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WakeWorld Discussion Board » >> Boats, Accessories & Tow Vehicles Archive » Archive through March 18, 2009 » Auxiliary Fuel Tank = Big Gas Savings « Previous Next »
By David Williams (wakeworld) on Monday, June 23, 2008 - 9:46 pm:    Edit Post Delete Post
Ok, I just thought of this today and it seems like a brilliant idea (as they all are). I occasionally make it down near or over the border to Mexico where gas is about $2 cheaper per gallon than here in the U.S. If I picked up a tank like this (http://www.northerntool.com/webapp/wcs/stores/servlet/product_6970_200350934_200350934) for my truck, I’d be saving about $180 (at current prices) every time I filled it up in Mexico and brought it back home. That means it would pay for itself in about four trips. It seems too easy. What am I missing? Do people already do this?

I did notice that most of the auxiliary tanks say they aren't for use with gasoline (diesel only). My truck is gasoline. Does that mean it's illegal to cart around a 90-gallon tank of gasoline? I guess there is probably some added risk if you get into an accident, but that seems pretty minimal.

 
By Bryan Locke (gwnkids) on Monday, June 23, 2008 - 9:53 pm:    Edit Post Delete Post
David look into Aero Fuel tanks in Corona this is what they specialize in.
They say 80% of there business is from the San Diego county area.

 
By Stewart (stewart) on Monday, June 23, 2008 - 9:58 pm:    Edit Post Delete Post
They mentioned this the other day on the National News how residents of San Diego were going down and buying fuel.

They also mentioned how they are averaging over 2 hours to get over the boarder and back.

So, I guess, you need to factor in your driving time and MPG, sitting in line and then driving back.

 
By Bryan (westsiderippa) on Monday, June 23, 2008 - 10:04 pm:    Edit Post Delete Post
sweet idea dave, and just think, you could make some serious deals on guchi purse's and national soccer jursey's, dont forget while you wait all those churro's and mango with chili sauce.
 
By David Williams (wakeworld) on Monday, June 23, 2008 - 10:33 pm:    Edit Post Delete Post
You definitely have to know when and which borders to hit. Does anybody want one of those Mexican wrestling masks while I'm waiting in line? How about a Spanish version of the latest theatrical release?
 
By Jeff Hill (hillbilly) on Tuesday, June 24, 2008 - 12:23 am:    Edit Post Delete Post
Bring me back "Baby Girl"! You going to Reno DW? If so I might not be-able to LOL
 
By David Williams (wakeworld) on Tuesday, June 24, 2008 - 12:25 am:    Edit Post Delete Post
I'm going to try to make it. If I can get this tank hooked up, I could afford to drive! :-)
 
By Jason H (turbonine) on Tuesday, June 24, 2008 - 9:42 am:    Edit Post Delete Post
I am pretty sure that if the tank is gravity fed into your main tank it is not DOT approved. If you avoid that I think it is street legal. The only other issue I see is that you are avoiding paying the Fedral road tax of 18 cents per gallon, but I don't think anyone is going to come knocking on your door.

I am in PHX, maybe I should start making trips down there.

 
By 1boarder_kevin (1boarder_kevin) on Tuesday, June 24, 2008 - 10:39 am:    Edit Post Delete Post
the old fords had 2 tanks back 10-15 years ago with a switch between the two so it should be doable.

On another note, my dad has a 250 gal tank that he fills up before the season and before gas prices go up. Unfortunately, I am 300 miles from his tank and over 1500 miles to Mexico

 
By Sam (wake1823) on Tuesday, June 24, 2008 - 11:20 am:    Edit Post Delete Post
Does the US customs not care? Or does this fall under some $$$ min?

If not, hire a tanker truck and start selling to your local independent gas station

 
By David Williams (wakeworld) on Tuesday, June 24, 2008 - 11:47 am:    Edit Post Delete Post
Here is something a friend of mine provided from an interview with Border Patrol. I think that if you had the tank tied in with your engine as a true auxiliary tank (as opposed to just an extra tank), you could get around this unless the tank is extraordinarily large.

After seeing a spike in extra tanks and containers, U.S. Customs and Border Protection published an advisory telling people that anything not in their vehicle's gas tank qualifies as a commercial import and must be brought in and documented through commercial lanes.

"We're not stopping people who are coming in with just one diesel tank, but we're looking at people who are coming in with several of them," CBP spokeswoman Mucia Dovalina said in a news release.

In a phone interview Thursday, Dovalina said the advisory applied to "anything that is not in actual use or that is not fitting to the vehicle that is in operation of the vehicle."

 
By Sam (wake1823) on Tuesday, June 24, 2008 - 11:56 am:    Edit Post Delete Post
^^^Sounded like a nice loop hole while it lasted. I'm sure alot of people made soem nice $$ off of it.
 
By hairbandude (slipknot) on Tuesday, June 24, 2008 - 12:43 pm:    Edit Post Delete Post
My buddy brought back 250 gallons of gas from Mex last night for his Boston Whaler with twin 225's. And his buddy also had his truck full with another tank as well.

The WSJ also has an article today on the exact same topic. I think they mention all info....


Fill 'er Up: Gas Is Cheap in Tijuana,
So Californians Buy Big Fuel Tanks
Pickups Make Lots of Runs Over the Border;
How Mr. Robinson Pays for His Vacation
By JOEL MILLMAN and ANA CAMPOY
June 24, 2008

SANTEE, Calif. -- As gasoline prices rise ever higher, some drivers have discovered an alternative to runaway fuel inflation in the U.S.: subsidized gas just minutes away in Mexico.

Gasoline is selling for six pesos per liter across the border in Tijuana, which works out to about $2.50 a gallon, way cheaper than gas prices approaching $5 a gallon in San Diego County. Diesel fuel is cheaper still -- $2.19 a gallon.


All of this is a boon for James Blue's auto shop, located in a strip mall in the arid hills east of downtown San Diego. His business, Express Performance Center, installs extra-large fuel tanks in pickups and other work vehicles used for runs to fill up with cheap gas in Mexico.

Already this month, Mr. Blue's shop has installed 12 tanks, more than he sold in all of last year. He expects demand to grow throughout the summer. Bulk fuel users, including farmers and construction contractors, are his best customers, he says. Many drive to Mexico several times a week, often looking to bring enough fuel back to sell to neighbors and co-workers.

"It's a daily thing for some: run across the border and fill up," explains Mr. Blue, an easygoing 36-year-old. His garage charges plenty to install either a 75-gallon or 98-gallon tank; the tanks fit snugly across the back of a pickup truck bed, against the cab. Special "t" switches let a driver alternate between gasoline sources. Big tanks cost $1,700 installed, while the smaller models go for $1,300.

Either is a bargain, says Gustavo Robinson, a plumber who works for the public school district of Chula Vista, Calif., a nearby border community. The 75-gallon tank he installed this week and the original 28-gallon tank he'll keep using will allow him to save at least $200 when he fills up in Mexico. With vacation trips planned for Las Vegas and San Francisco, he expects to do that a lot this summer.

The gas rush is also good for Mr. Blue's principal supplier, Transfer Flow Inc. of Chico, Calif. Marketing director Warren Johnson says the company is enjoying one of its best seasons in 25 years. In May, Transfer Flow moved more than half a million dollars worth of larger replacement and refueling tanks to wholesale and retail customers. Mr. Johnson says hundreds of tanks are on order to dealers in border states.

Crossing the Border

Crossing the border, of course, can be a hassle, with long gas lines that can take hours. Many of Mr. Blue's customers go at dawn to avoid the traffic. Others prefer an early evening run, particularly to the sleepy town of Tecate, where the wait to cross back into the U.S. is shorter, often less than 20 minutes, compared with an hour or more at busier spots like Tijuana and Otay Mesa.

Mexicans aren't happy about the gringo invasion and the long lines at filling stations near the border. Over the past week, a diesel shortage developed in Tijuana, where many big Mexican trucks and Americans hoping to save money converge on Pemex filling stations run by Petróleos Mexicanos, the state oil monopoly.


Reuters
A sign at a gas station in Tijuana shows the price of premium gasoline at 7.53 pesos a liter, or about $2.71 a gallon, while indicating that across the border in the U.S. gas costs 16.00 pesos a liter, or about $5.76 a gallon.
This week, only a handful of filling stations are offering diesel in Tijuana, compared with the 35 that normally offer the fuel, according to Joaquin Aviña, a spokesman for an association of 157 Pemex station owners in Tijuana.

Pemex historically set gas prices along the border to be within a few cents per gallon of U.S. prices. That deterred motorists from the two countries from comparison shopping in a binational market where U.S. citizens enjoy a distinct advantage: They are free to travel both ways across the border, while Mexicans require visas to enter the U.S.

$20 Billion Subsidy

But as the price of gas has skyrocketed in the U.S. in the past few years, Mexico has kept its prices in the border area from rising as quickly in order to keep fuel affordable for the poor. In May, Mexican President Felipe Calderón announced an additional $20 billion subsidy this year as an emergency measure intended to keep inflationary forces in check.

Pemex chief Jesús Reyes Heroles was questioned last week by reporters in Mexico City, asking whether U.S. demand is behind the border shortages. Mr. Reyes said he did not anticipate big supply problems in the months ahead, but added that Pemex is considering "extraordinary measures" to address the imbalance between U.S. and Mexican prices.

There is another reason Mexicans do not like the American invasion of their filling stations. Even though Mexico is an oil exporter, it doesn't have the refinery capacity to turn enough of the oil into gasoline, and therefore imports much of its gas from the U.S. By subsidizing the fuel and reselling it to Americans at cut rates, the Mexican government loses twice.

For the first four months of the year, Pemex sold gasoline for about $89 a barrel, but paid on average more than $110 a barrel for imports, according to data from the Mexican Energy Ministry. In April, Mexico's gasoline-import bill ballooned to more than $120 a barrel. The government's calculation of the first quarter subsidy bill: $1.8 billion.

The shortage of diesel in Tijuana is bad enough that some filling stations are now refusing to serve Americans. Ken Sullivan, a San Diego swimming-pool contractor, was turned away at a Pemex station near the Otay Mesa crossing east of San Diego. The 49-year-old American driver tried to join a line of 18-wheel trucks at a Pemex station he usually patronizes, and was told he wouldn't be served. A Pemex attendant who gave his name as Sergio confirmed to a reporter that only "corporate" buyers would be allowed to fill their tanks until more supply comes from Pemex.

Backlash

A backlash against U.S. buyers could ultimately cause Americans to decide that it isn't worth the hassle of crossing the border. But so far, the allure of cheap gas appears too strong to resist. Mr. Blue, the vendor of extra gas tanks, says he's even getting calls from motorists who want to add a second fuel tank in their trunks' spare-tire wells. Others are looking to rig spots where a 40-gallon portable tank can be secured.

Crossing the border with fuel in a container that isn't attached to a vehicle's engine is illegal. California motorists routinely are sent back to Mexico and forced to empty unattached tanks spotted by U.S. border inspectors.

"It happened to someone who lives near me," says Mr. Robinson, the Chula Vista plumber, who explains U.S. Customs agents at the border detained a neighbor of his when they spotted a 100-gallon container of diesel in the bed of his truck, then sent both driver and truck back to Mexico.

In the end, the California motorist found a line of trucks waiting to fill up at a Pemex station and was able to sell them his cargo. "He said he charged $4 a gallon," Mr. Robinson says.

 

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