SHCP Maintains Gasoline and Diesel Without Fiscal Stimuli for Thirteenth Consecutive Week
The Ministry of Finance and Public Credit (SHCP) has decided, for the thirteenth week in a row, to keep the quotas applied to the Special Tax on Production and Services (IEPS) for gasoline and diesel without any fiscal stimulus. According to the publication in the Official Gazette of the Federation, during the week of July 5th to 11th, consumers must continue to pay the full amount of the tax: 6.45 pesos per liter for regular gasoline (Magna), 5.45 pesos for Premium, and 7.09 pesos in the case of diesel.
This decision is part of the SHCP’s flexible fiscal policy, which is implemented according to international oil market conditions and the behavior of domestic prices. In general, when international crude prices experience significant increases, the government grants fiscal stimuli to the IEPS to soften the blow for end consumers’ wallets. However, at present, international prices have remained relatively stable, which is why the fiscal authority has chosen to suspend subsidies since last April 12.
This policy has had a direct impact on federal tax collection. Official figures show that, in May, revenues from the IEPS on gasoline and diesel increased by 3.8% compared to the same month in 2023. Cumulatively, between January and May of this year, revenue from this tax reached 168.539 billion pesos, representing a 0.5% real annual increase—and accounting for 35.5% of the total expected for 2024. These revenues are key for Mexico’s public finances, especially given the need to support social programs and various federal government budgetary commitments.
Despite the absence of fiscal stimuli, fuel prices in the country have remained relatively stable; as of Friday, July 4th, the national average price for Magna gasoline was 23.42 pesos per liter, Premium was at 25.60 pesos, and diesel at 26.23 pesos, according to reports from PetroIntelligence. While these levels remain below the historic highs seen in other periods, they continue to be a relevant factor in the cost of living and the operation of sectors heavily dependent on fuels, such as transportation and industry.
Looking ahead, Mexico’s energy sector faces the dual challenge of keeping prices affordable for consumers while ensuring a steady source of revenue for the State. The performance of the international oil market, as well as fiscal policy decisions, will continue to be key factors determining fuel prices in the country. Experts warn that possible shocks to crude oil prices could once again force the Ministry of Finance to reconsider the application of fiscal stimuli to soften adjustments in the local market.
In summary, the suspension of fiscal stimuli on the IEPS for gasoline and diesel reflects a scenario of stable international prices and a strategy to shore up federal revenues. However, authorities remain vigilant for changes in the global energy market and the domestic economy that could directly impact Mexicans’ wallets and the country’s budgetary stability.
