Gas Tourists Head South for Cheaper Gas

June 30, 2008— -- With gas prices hitting $5 per gallon, and some analysts predicting prices upward of $7 per gallon within the next two years, it's no surprise that more Americans are on a mission to find the cheapest gas. And in the extreme Southwest, some have found it; a fuel nirvana of sorts, where gasoline and diesel prices are slashed in half: Mexico.

Kerry Manchego, a construction contractor who lives east of San Diego is one of these Americans traveling south for cheaper fuel. With the housing slump, business is down and the economic downturn has hit him hard.

"A lot of people under 40 have never experienced a slow time in San Diego," said Manchego. "We've had a 15-year boom. And they're wondering what's going on. But I've been there before."

To find work, he's had to expand where he travels. "We have to drive farther," he said while behind the wheel of his pickup truck. "There's less jobs. The work is where the money is."

The surge in the price of gasoline takes a big bite out of profits. His pickup truck runs on diesel and it costs him nearly $200 to fill its 38-gallon tank.

For Manchego, desperate times have lead to desperate measures. Finally, he went to an auto shop and for $1,300 had a second tank installed in his truck. The tank holds an additional 40 gallons of fuel.

Auto shop owner Scott Young says these tanks have suddenly become very popular. He sells what are called transfer flow fuel tanks. They come in a variety of sizes.

James Blue, a manager at Young's Express Performance Center, said the tanks are flying off the shelves. "I'd say last year we moved maybe 10 the whole year. This month alone I've done 12."

Why the sudden surge in popularity? Cheap gas is one reason. Plus, Border Control won't allow drivers to fill up gasoline canisters and bring them back to the states. Americans are taking these super-size tanks and heading south of the border to Mexico.