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Mexico Restores Weekly Fuel Tax Relief as Oil Prices Climb

SHCP says the IEPS adjustments are meant to soften the immediate impact of higher global crude on Mexican pump prices.

Overview

  • The government published in the Diario Oficial that for the week of July 18–24 it reinstated a Premium gasoline stimulus of 0.47 pesos per liter and increased support to 1.49 pesos per liter for Magna and 3.73 pesos per liter for diesel.
  • Those measures cut the IEPS consumer quotas to 5.21 pesos/liter for Magna, 5.19 pesos/liter for Premium, and 3.63 pesos/liter for diesel, lowering the tax portion shown on pumps.
  • Renewed clashes between the United States and Iran and related attacks on energy infrastructure pushed Brent and WTI higher and helped lift U.S. average gasoline back to about $4 per gallon, according to AAA and market data.
  • The Premium price in Mexico rose above diesel because it received little support during most of the recent conflict, while voluntary price caps for Magna (24 MXN/l) and diesel (27 MXN/l) and Profeco spot checks continue to shape what consumers actually pay.
  • Analysts warn that refinery attacks, tighter refined-product supply and peak summer demand could keep pump prices elevated, a dynamic that carries near-term political and household budget pressures in both Mexico and the United States.