Treasury eliminates diesel and Premium subsidies, and cuts Magna subsidies

The liter of Magna gasoline will benefit from a fiscal stimulus of 4.23%, equivalent to a discount on the IEPS rate of 0.26 pesos, so customers at stations will pay a rate of 5.91 pesos of IEPS. This discount is less than that granted for the week of July 13 to 19, which was 12.64% equivalent to 0.78 pesos.

What are gasoline subsidies?

The objective of granting discounts to the IEPS fees It is to offset the price escalation when oil prices increase (mainly in the United States, Mexico’s main fuel supplier).

When prices remain stable or do not have large increases, the Treasury collects the IEPS quotas in full or with small discounts, which helps collect tax revenue.

These quotas change every week and are published in the Official Gazette of the Federation. They have a maximum amount that is published in December of each year and apply to the following year; for example, at the end of 2023, the quotas applicable for all of 2024 were published.

How much does gasoline cost in Mexico?

On Friday, July 19, the average price of Magna gasoline in Mexico was 23.89 pesos per liter, that of Premium gasoline was 25.49 pesos, and that of diesel was 25.56 pesos, according to the PETROIntelligence agency.