In Mexico, 9.67 pesos are taxed per liter of gasoline, while in the United States the equivalent of 2.59 pesos is paid.
Gasoline in Mexico, which is currently at an all-time high in the country, is currently 38.77% more expensive than in the United States, according to calculations made by El Economista.
In Mexico, regular gasoline is sold this Tuesday, on average, nationwide at 23.98 pesos per liter, according to data from the consulting firm PETROIntelligence, which monitors fuel prices at service stations in the country.
While in the United States, regular gasoline is currently sold at 17.29 pesos per liter, according to data from the U.S. Energy Information Agency (EIA) and converting prices with an exchange rate of 18.78 pesos per dollar.
At the beginning of 2024, gasoline in Mexico was up to 60% more expensive than in the neighboring country to the North, partly because the exchange rate was cheaper (the dollar was quoted at 17 pesos).
The reason why gasoline is much more expensive in Mexico than in the United States is that in our country almost four times more taxes are paid than in the United States.
In Mexico, for each liter of gasoline, 9.67 pesos are paid per liter in taxes, that is, 40% of what is paid for each liter of fuel is in the Special Tax on Production and Services (IEPS) and Value Added Tax (VAT).
In the United States, on average, at the national level 2.59 pesos are paid in taxes for each liter of regular gasoline, which is equivalent to just 15% of the total price of each liter of fuel, according to EIA data.
However, it should be noted that the tax rate in the United States varies depending on each state, since for example, in California, a state tax is paid that is equivalent to double the national average.
In Mexico, at historic highs
So far in 2024, the price of regular gasoline in Mexico has risen 8.50% or 1.88 pesos, which, according to energy and economic advisor Ramsés Pech, has had an impact on inflation.
“In 2025, when markets adjust prices due to inflation, there will be a significant impact on the Gross Domestic Product (GDP),” said Pech.
While in the United States, regular gasoline has increased 11.81% so far this year, going from 3.12 to 3.48 dollars per gallon, which are the units in which fuel is sold in that country.
While gasoline in Mexico continues to reach record highs never seen before, the smaller increase in the United States reflects the results of Mexico’s fuel tax policy, which seeks to stabilize prices and avoid “gasolinazos.”
In Mexico, the government provides tax incentives to cushion the impact that an increase in international oil prices could have on gasoline.
When crude oil rises, the government increases the stimulus, absorbing part of that increase and charging less IEPS.
However, when crude oil falls in international markets, the government cuts the stimulus and charges more IEPS.
Source: eleconomista
