Reduction of Subsidies for Magna Gasoline and Diesel in February

During the week of February 1 to 7, the Ministry of Finance and Public Credit (SHCP) has reduced subsidies for Magna gasoline and diesel compared to the previous week. On the other hand, the fiscal support for Premium gasoline remained at zero. Thus, the subsidy applied to the IEPS charged per liter of Magna gasoline dropped from 19.31% to 13.14%, while the diesel subsidy decreased from 29.16% to 16.72%, according to the SHCP in the Official Gazette of the Federation (DOF).

The amount of IEPS per liter of Magna gasoline is now 5.60 pesos, reflecting a discount of 0.86 pesos; Premium gasoline stays at 5.45 pesos, and the price for a liter of diesel is 5.90 pesos, which includes a discount of 1.18 pesos.

What is the reason for the subsidy? The federal government, through the Ministry of Finance, decides to implement these subsidies for gasoline and diesel in order to soften the impact of rising international oil prices and other fuels. With greater discounts, this creates an effect on the tax revenue for the federal government. What are the current prices of gasoline? As of January 31, the national average price per liter of Magna gasoline is 24.27 pesos, Premium reaches an average of 25.72 pesos, and diesel sells for an average price of 26.15 pesos per liter, according to information from PetroIntelligence.

It is important to note that the reduction of subsidies may trigger an increase in consumer prices, which could influence inflation and affect the purchasing power of the population. In an uncertain global economic context, it is vital for the government to adopt balanced strategies to maintain the financial stability of citizens and tax revenue. Proper management of subsidies is key to sustainable development in the energy sector.