You Can't Make This Up: Mexican Gas Price Control Edition
Mexico's government owns Pemex, which is the major producer of crude oil in Mexico.
To mollify the masses, the Mexican government subsidizes gas retailers to lower prices at the pump.
Except that Pemex (and Mexico as a whole) doesn't have enough refinery capacity to make enough gasoline for the whole country.
So ... get this ... they sell crude oil to the U.S. at the going rate, buys back gasoline at the going rate (about 1/3 higher), and then knocks over 40% off of that price to sell to consumers.
Taxpayers foot the bill.
Read the whole thing - they're now banning Americans from buying gas in Tijuana because they've figured out that it is worth the trip.
