Mexico's Finance Ministry Quadruples Premium Gasoline Tax Stimulus to 23.9%
The SHCP raised the IEPS fiscal stimulus for Premium gasoline from 6% to 23.9% for the week of September 5-11; here is what it means at the pump.
Mexico's Finance and Public Credit Ministry (SHCP) quadrupled the fiscal stimulus for Premium gasoline, from 6% to 23.9% per liter, for the week of September 5-11. The agreement was published Friday, September 4, in the Official Gazette (Diario Oficial de la Federación, DOF), according to Bloomberg Línea.
The fiscal stimulus is the tool Hacienda uses to absorb part of the special production and services tax (IEPS) each week, preventing sharp increases in international crude prices from feeding directly through to the pump. In the same agreement, the support for regular gasoline rose from 22.8% to 31.4% per liter, and the diesel stimulus climbed from 81.5% to 90.78%, equivalent to roughly 6.68 pesos per liter. The adjustment comes as international prices rise on the back of the conflict between the United States and Iran and the closure of the Strait of Hormuz, through which approximately 20% of global crude trade flows. Mexico continues to import fuels from the United States, so the upturn in external markets also reaches domestic demand.
In peso terms, the Premium stimulus moved from 0.30 to 1.35 pesos per liter. Expansión details the effect on the IEPS quota paid by consumers: 4.31 pesos per liter for Premium, 1.01 less than the previous week; 4.59 for Magna and 0.68 for diesel. The national average price as of September 4 stood at 23.69 pesos for Magna, 28.58 for Premium and 27.02 for diesel, according to PetroIntelligence, as cited by Expansión. The mechanism does not automatically lower prices at the pump: Hacienda uses it to contain sudden spikes while maintaining its voluntary price-cap agreement with industry players, renewed for six months, which sets regular gasoline at 24 pesos and diesel below 27.
The agreement will remain in effect through September 11, when Hacienda will publish the following week's stimulus level. The support rate is recalculated every Friday based on crude quotations, in a market that continues to track the Strait of Hormuz.
This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.
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This article was drafted with AI assistance from verified sources and reviewed by a human editor before publication.