Hacienda Cuts Fuel Stimulus; Diesel Retains 65% Support

Mexico's Finance Ministry (Secretaría de Hacienda y Crédito Público, SHCP) has cut the special production and services tax (Impuesto Especial sobre Producción y Servicios, IEPS) stimulus on gasoline for the week of August 8 to 14: Magna receives a discount of 1.40 pesos per liter, Premium 0.33 pesos, and diesel retains the largest support at 4.78 pesos, according to Expansión.

The stimulus represents the share of the full IEPS rate that consumers do not pay. The SHCP recalculates it every Friday and publishes it in the Official Federal Gazette (Diario Oficial de la Federación, DOF), based on U.S. reference prices, as Mexico imports the bulk of its gasoline consumption from the United States, according to Expansión. Compared to the previous week, support fell across all three fuels: Magna dropped from 2.45 to 1.40 pesos, Premium from 1.50 to 0.33 pesos, and diesel from 5.59 to 4.78 pesos per liter. The effective rate consequently rises to 5.30 pesos for Magna, which now covers 79% of the full rate; 5.33 pesos for Premium, which covers 94%; and 2.58 pesos for diesel, which covers 35%, according to El Economista.

The adjustment lands in a week of pronounced crude oil volatility. International oil prices fell up to 8% on expectations that the conflict in Iran would wind down, then closed Thursday and Friday higher as uncertainty over the Strait of Hormuz persisted. Iran and Oman agreed on a shipping route, though it remains unclear whether the United States will accept the terms, El Economista reported. West Texas Intermediate (WTI) moved from 81.30 to 78.18 dollars per barrel, touching a high of 82.24, while Brent fell from 84.45 to 83.55 dollars, with a peak of 86.19 on August 4, according to Energía a Debate. At the pump, national average prices closed the week at 23.69 pesos for Magna, 28.52 for Premium, and 27.03 for diesel, within the voluntary agreement that keeps Magna below 24 pesos.

Diesel, the fuel of freight and passenger transport, retains the largest discount of the three. The SHCP will publish the next rate on Friday, August 14, in the DOF. The level will depend on how the international oil complex closes the week, in particular the progress of the Strait of Hormuz agreement and the U.S. position on its terms.

This article was drafted with artificial intelligence assistance based on verified sources and reviewed by a human editor before publication.