Mexico indeed has a a sales tax. It is called IVA and presently is 16%. I don't think that Pemex is a model for any country to follow. They are so inefficient that much of the gasoline sold in Mexico is imported from the good old USA. About 2 billion dolars worth a year!! And like any Government owned company their cost of production is higher than in say the USA. Gasoline in Mexico is cheaper because it is subsidized. Buying gasoline for say $3.50 a gallon and selling it for $3.00 doesn't sound like a good business practice. Public corps are always the same. Income tax in Mexico is not low. It has to be high as very few actually pay their taxes. Cheating is rampant.
Moisheh
From Wikepedia:
Despite its current $80.6 billion in revenue, Pemex pays high taxes that contribute a large portion of the budget of the federal government. In recent years the company has only been able to make ends meet through massive borrowing, so that it now owes a staggering $42.5 billion, including $24 billion in off-balance-sheet debt because the Mexican government treats the company as a major source of revenue. The state-owned company pays out over 60% of its revenue in royalties and taxes, and those funds pay for 40% of the federal government's budget. In 2005, with record-breaking oil prices, the company saw an unexpected excess of funds. This trend continued in 2006, but these funds have been used to pay salaries of bureaucrats and current costs, instead of being invested in projects of exploration and production; during the President Fox administration, these funds represented around 70 billion dollars, yet the administration said there was not enough money to pay the debts. The lack of investments prevent adequate refining capacity to be added. While exporting crude oil, Mexico imports expensive gasoline
Moisheh
* This post was
edited 03/01/12 06:21pm by moisheh *
mexbungalows wrote: Like Michael Crichton found with diamonds. There is a vast conspiracy in place to keep the price supported. If it were made public knowledge how many hundreds of TONS of raw diamonds in the 1/4 - 1 carat size are being stored it would collapse the market.
Back in the early nineties I watched an interview with the most famous petrol-geologist the USSR has ever produced. The man referred to carefully laid out charts and maps and then launched into a tirade about conspiracies, collusion, graft and greed.
"At this time there is definitely between 1.5 and 1.8 quadrillion barrels of recoverable crude in Siberia, the Arctic regions of Siberia, and north America. It would not surprise me to hear of an equally large reserve of not economically feasible to recover at this time crude oil under ice in Greenland.
"They got me pinched way the hell back!" was the complaint of one oil well tycoon from the front porch of his Texas home. They year was 1972 and refiners were hooting and blowing that they could not find enough crude. The man took me on a guided tour.
The estimated recoverable oil reserves in the top 100 oil-producing countries in the world total 1,392,461,050,000 barrels. For ease of comprehending such a number, that would be 1.392 trillion barrels. You are actually suggesting that Siberia, the Arctic regions of Siberia, and north America alone have reserves of 1,800,000,000,000,000 barrels???? That would be 1,800 trillion barrels, or 1,293 times the combined total of the rest of the world!
I think, maybe, you might want to lay off whatever you've been smoking!
Turtle-Toad wrote: How do they justify diesel being more expensive than gas? Diesel isn't refined as much as gas is. Plus it doesn't have a slew of additives like gas.
Here's the official answer, from the Energy Information Administration:
Since September 2004, the price of diesel fuel has been generally higher than the price of regular gasoline all year round for several reasons. Worldwide demand for diesel fuel and other distillate fuel oils has been increasing steadily, with strong demand in China, Europe, and the U.S., putting more pressure on the tight global refining capacity. In the U.S., the transition to low-sulfur diesel fuel has affected diesel fuel production and distribution costs. Also, the Federal excise tax on diesel fuel is 6 cents higher per gallon (24.4 cents per gallon) than the tax on gasoline.
Do you remember how Enron controlled the price of electricity by limiting generating capacity ? Apparently the petro companies thought that was a good idea and are right now very reluctant to add any more refining capacity. RYV
moisheh wrote: Mexico indeed has a a sales tax. It is called IVA and presently is 16%. I don't think that Pemex is a model for any country to follow. They are so inefficient that much of the gasoline sold in Mexico is imported from the good old USA. About 2 billion dolars worth a year!! And like any Government owned company their cost of production is higher than in say the USA. Gasoline in Mexico is cheaper because it is subsidized. Buying gasoline for say $3.50 a gallon and selling it for $3.00 doesn't sound like a good business practice. Public corps are always the same. Income tax in Mexico is not low. It has to be high as very few actually pay their taxes. Cheating is rampant.
Moisheh
Moisheh
I agree 100% but not with the tax. The downfall began at the beginning in 1938 with the nationalization of oil in Mexico and the founding of Pemex and the Pemex union. Today, 52% of all revenue is eaten up by the union and the benefits paid to its employees; free housing (ever seen a Pemex city, Reynosa, Cadereyta, Tampico, Villahermosa?) free utilities, huge Christmas bonuses, food coupons, gas coupons, free medical, huge pensions, the list goes on.
Venezuelans are now discovering the "benefits" of nationalization. If you own more than one property Hugo Chavez will confiscate it, trust me, it has happened to friends. Take from the rich and give to the poor. They thought it was a good idea in the beginning, now they are singing the blues and they can't get rid of the guy (and conspiracy theories are rampant concerning Hugo's cancer including intervention by the U.S.).
I hope Mexicans can wake up before the elections and see that we don't need another Hugo, Fidel, or Evo in Mexico (Lopez Obrador), if not, 1.5 million Americans along with a few million other foreigners will be leaving Mexico for good.
OMG Chris: We are singing from the same songbook. I should have added to my original post that there many things that other countries could learn from Mexico. Running a Crown Corporation is not one of them. In Canada we have our own "Pemex's". Crown Corporations that are just money pits! As Pemex runs out of oil the Gov. will have to find a new source of revenue.
Since the price of gas started its rise back in the 1970's during the "oil embargo" I've always said that the only thing worse than the government NOT controlling the price of fuel would be the government CONTROLLING it.
Stan & Linda
Hobo the Cat
06 Dodge 3500 CTD 6 sp Quad Cab Bighorn
04 Laredo 29GS
97 Northland Polar 1060
"Never argue with a fool, onlookers may not be able to tell the difference"
The Venzl. price is per US Gal. .. the liter price is just over a penny a liter!... When we traveled with the RVs, all were diesel, so I am not sure what the gasoline was?, but it was about two or three times as high as diesel, probably about 15 cents a US Gal.!! ummmmm?
Hopefully the States will hook up with the pipeline and do some more exploration at home.
RonYVickie wrote: Do you remember how Enron controlled the price of electricity by limiting generating capacity ? Apparently the petro companies thought that was a good idea and are right now very reluctant to add any more refining capacity. RYV
I don't think the petro companies could build a new refinery even if they wanted to. The environmental reviews and permits needed make it next to impossible to build. The general public might say they should build more refineries but don't build it in my backyard or you can't build a pipeline. We always seem to shoot ourselves in the foot.
* This post was
edited 03/02/12 03:33pm by playaboy *
RonYVickie wrote: Do you remember how Enron controlled the price of electricity by limiting generating capacity ? Apparently the petro companies thought that was a good idea and are right now very reluctant to add any more refining capacity. RYV
I don't think the petro companies could build a new refinery if they want to. The environmental reviews and permits needed make it next to impossible to build. The general public might say they should build more refineries but don't build it in my backyard or you can't build a pipeline. We always seem to shoot ourselves in the foot.
I worked 35 years in the pulp and paper industry. Almost as difficult to build a pulp mill as it is to build a refinery. Everybody wants jobs, but nobody wants 'industry'.
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