Hacienda Raises Diesel Subsidy to 71.58% as International Crude Prices Surge

Mexico's Finance Ministry (SHCP) set a diesel fiscal stimulus of 71.58% for the week of July 25-31, equivalent to 5.27 pesos per liter, one of the highest levels since the mechanism was reactivated in March 2026. The adjustment responds to rising international crude prices driven by the conflict in the Middle East.

The diesel stimulus rose from 50.64% the previous week, an increase of 20.94 percentage points, according to Expansión. Consumers will pay a Special Tax on Production and Services (IEPS) rate of 2.09 pesos per liter, just 28.42% of the full statutory rate. SHCP, led by Édgar Amador Zamora, also raised stimuli for Magna gasoline (from 22.20% to 38.18%, equivalent to 2.56 pesos per liter) and Premium (from 8.23% to 30.06%, equivalent to 1.70 pesos per liter), as reported by El Economista.

This week's increase is the sharpest for all three fuels so far this summer. Diesel carries the largest stimulus given its centrality to freight and passenger transport: the federal government absorbs 5.27 of the 7.36 pesos of the full IEPS rate per liter, leaving consumers paying just 2.09 pesos in tax. In parallel, the government maintains voluntary agreements with fuel retailers to keep diesel retail prices below 27 pesos per liter and Magna gasoline below 24 pesos. The escalation in international crude prices, driven by US-Iran tensions and their impact on Middle East markets, is the primary trigger for the stimulus increases.

These IEPS stimuli are reviewed every Friday and are valid for one week, so the next adjustment, to be published on July 31 for the August 1-7 period, will depend on the evolution of international crude prices over the coming days.

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