
PHOENIX, May 28, 2008
Heading South Of The Border For Diesel
As Gas Prices Go North, Americans Head South To Fuel Up
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Play CBS Video Video Crossing The Border For Fuel The owner of a multi-million dollar trucking business in Arizona is travelling to Mexico in an effort to save money on diesel fuel. Seth Doane reports.
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With diesel prices soaring, Angelo and Sharon Romano (pictured) have been struggling to keep their family trucking company afloat. Will crossing the Mexico help them save? (CBS)
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They're hoping that a 180-mile journey from Phoenix all the way to Mexico, will save their family trucking business.
"You're getting more nervous as we get closer," CBS News correspondent Seth Doane said to Angelo.
"Oh yea, I get so nervous, the closer we get to the border - not knowing what is going to happen," he said.
The trucking company's been in the family for nearly 40 years. Their daughters' names are on every fender.
"It's been real tough," Angelo said. "We have a multi-million dollar business that is struggling. Everything that I sacrificed in my life could come to an end in a matter of months."
"It seemed like overnight for me. I woke up one day and thought, 'oh my God, how can we do this?'" Sharon said.
How can they keep their dozen trucks running on diesel, when fuel prices have jumped nearly 50 percent in just a year, wiping out any profit.
"We saved our money - we put money aside for the rainy days," Angelo said. "We've gone through our savings - we went through our reserves to pay our fuel bill."
When Angelo learned that diesel in Mexico is half the Arizona price, he built a large tank to fit into his truck.
"So 11 inches of the bed have been retrofitted to be a fuel tank?" Doane said.
"To be a fuel tank for the truck," Angelo said.
And headed south nearly three hours just to fill up.
After they crossed the border into Mexico … diesel in Nogales was selling for about $2 a gallon. The Mexican government owns the stations and controls the prices.
"This is quite a trip," Doane said. "Is it worth it?"
"For 200 gallons," Angelo said. "Yeah, just saved myself $400."
But getting back over the border is stressful, with hours of questions, paperwork, and taxes to pay.
"It feels like I'm smuggling marijuana back into the states and I'm just bringing diesel back," Angelo said.
The whole family is feeling the pressure.Learn more about how Angelo got his gas across the border at Couric & Co.
"They had their 8th grade class trip to Disneyland. Nicki chose not to go, because it would be an added expense," Sharon said. "So we have really good kids."
The Romanos are desperate.
"There's no help. We have to do it ourselves," Angelo said. "We - me and Sharon - had to go out there and find a way to survive. We're survivors. And we will survive."
The Romanos named their dog Diesel - and they joke that right now he's the only diesel they can afford.
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Learn more about how Angelo got his gas across the border at Couric & Co.
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Mexico has their own refinery.
We pay state fuel tax of .26 cents per gallon at the boarder they have DMV there at the border.
Consequences are very bad if you do not declare all of your fuel.
Since we are commercial we go through a custom broker for entry papers and declare our amount with the broker. You are allowed to carry no more then 119 gallon per tank. We have 2-100 gallon tanks in the bed plus the built in tank that is plumbed to the truck for comsumption. Any amount over the 119 gallon per tank is considered Hazmat then you have to follow hazmat regulations.Which we are looking into doing so once that is in place we will be able to declare alot more fuel. It is very stressful at the border not on the Mexican side but on our American side they try to dicourage this as best they can.Every scare tatic has been said to us, so if your planning the ride make sure you do everything legal and have a strong back bone to deal with customs. If you would like the customs broker number email me at romanotrucking1@cox.net
Our trade agreement with Mexico and now NAFTA is a sham.
Why is fuel in Mexico so much less expensive?
Is quality comparable?
Is fuel refined in Mexico or imported?
What taxes did Mr Romano have to pay at the border?
What are consequences for not declaring the purchase?