No Subsidies: Regular Gasoline Will Face Full IEPS Rate

This Friday, the Ministry of Finance announced that, for the second consecutive week, regular gasoline (the well-known green one) will not have any subsidy on the Special Tax on Production and Services ( IEPS ).

What's going on with the subsidies? What are the current gasoline prices? Regular: 23.905 pesos per liter. Premium: 25.309 pesos per liter. Diesel: 25.508 pesos per liter. Consumers will continue to pay the full IEPS on Premium and diesel liters. During the week of October 2 to 8, customers will be paying 6.1752 pesos per liter of Regular, 5.1246 for Premium, and 6.7865 pesos for diesel, as indicated in the Official Federal Diary (DOF). The Mexican government's decision to grant a subsidy on the IEPS depends on the behavior of oil prices in international markets to mitigate local market increases. However, every time this subsidy is applied, it represents a reduction in tax revenue. According to Petrointelligence.com, this Friday the average price of fuels in the country is:

Keeping the full IEPS with no subsidies may be a relief for the country's public finances, but it also means that citizens will need to adjust to rising fuel prices. In a context where inflation is an ongoing concern, it's vital for consumers to make smart financial decisions and consider more sustainable transportation alternatives, which could help control their long-term expenses.