In the midst of controversy over the 4.5% increase in the Special Tax on Production and Services (IEPS) —an increase that will affect the price of fuel—, the Government of Claudia Sheinbaum has ordered a subsidy of part of regular gasoline and diesel. The Ministry of Finance will apply a 3.57% stimulus on regular gasoline and 0.37% on diesel from January 1 to 10, so users will only cover part of the tax increase on these fuels. Premium gasoline remains without federal support. According to fuel market portals, a liter of regular gasoline is quoted, on this first day of 2025, at 24.04 pesos; premium gasoline costs 25.38 pesos and diesel is at 25.73 pesos.
During the first days of January, the Sheinbaum Government will subsidize each liter of regular gasoline with 23 cents. Thus, the IEPS to be paid by the consumer will be 6.22 pesos for each liter, instead of 6.45 pesos. In the case of diesel, the federal support is equivalent to less than one cent for each liter, so instead of paying for the special tax of 7.09 pesos for each liter, only 7.06 pesos will be paid. Premium fuel will not have any support from the Treasury and the rate remains at 5.45 pesos per liter. Since the end of 2023, this gasoline does not have any fiscal support from the Treasury.
The fiscal stimulus policy on the most consumed gasolines in Mexico was frequently applied in the last six-year term and aims to prevent inflation and price volatility from causing an abrupt rise in the price of fuels, the so-called gasoline increases. When oil and fuel prices rise globally, the Treasury provides a stimulus to the IEPS rate charged on gasoline in Mexico, to offset the rise in prices in the domestic market, however, setting these subsidies means less revenue for the public coffers.
In recent days, President Sheinbaum reported that they are carrying out a comprehensive review of gasoline prices in all states of the country. “I have instructed the Secretary of Energy, Luz Elena González, to sit down with all the gas stations, who have service stations, the different brands, because in the country’s routes there are places where Magna is at 26 pesos, which is totally out of the norm,” she said at the end of December. Regarding the increase in the IEPS, which directly affects the price of fuel, the president assured that the 4.5% increase is in line with inflation. “The idea is to have gasoline that does not increase in real terms, the only thing that can increase is related to inflation from the previous year,” he concluded.
Source: elpais
