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Hacienda Removes Premium Fuel Subsidy and Cuts Supports for Magna and Diesel

The weekly pullback responds to lower international oil prices and will raise the tax portion drivers pay at the pump.

Hacienda elimina por completo el subsidio a la gasolina Premium y reduce el de la Magna y el Diésel la semana del 6 al 12 de junio, obligando a pagar la totalidad del IEPS en estaciones de servicio | Archivo GH, Magnific
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Overview

  • The Treasury announced cuts for the week of June 6–12 by ending the subsidy for Premium gasoline and setting its IEPS quota at 5.66 pesos per liter.
  • Support for Magna was reduced so its IEPS quota rises to 5.80 pesos per liter with a subsidy of 0.90 pesos, and diesel subsidies were also lowered.
  • Reports differ on the diesel quota for the week: Expansión cites 4.68 pesos per liter while El Economista reports 4.39 pesos per liter, creating a noted discrepancy.
  • National average pump prices reported by PETROIntelligence on June 5 were 23.68 pesos for Magna, 28.47 pesos for Premium and 27.22 pesos for diesel, meaning drivers will now pay more tax on those amounts.
  • The weekly IEPS adjustments are a tool the government uses to smooth fuel-price swings and cutting subsidies when oil prices fall can boost federal tax receipts and increase out-of-pocket costs for consumers.