Year-End Without Gasoline Subsidies: Treasury 2024
The Ministry of Finance and Public Credit (SHCP) will not provide any discounts or subsidies on the rates of the Excise Tax on Production and Services (IEPS) applied to gasoline and diesel during the final weeks of the year, specifically from December 21 to December 31, 2024. Thus, the IEPS rate for a liter of Magna gasoline will be 6.1752 pesos; while for Premium gasoline it will be 5.2146 pesos, and for diesel it will reach 6.7865 pesos.
Why won’t there be any subsidies? What is the cost of gasoline?
It’s important to mention that every Friday, the Treasury announces the fuel subsidies. For the upcoming week, it’s expected that they will disclose the new IEPS amounts that will be applied in 2025, which are adjusted annually according to inflation. The agency has the ability to grant IEPS subsidies to mitigate the impact of increases in international prices, thereby avoiding effects on inflation in the country. When prices remain stable or do not experience significant fluctuations, the agency collects the full excise tax, contributing to fiscal revenue. According to the website Petrointelligence.com, this Friday, December 20, the average price per liter of Magna gasoline is 23.98 pesos, the premium is 25.34 pesos, and diesel has an average cost of 25.70 pesos.
Final comment: It’s crucial for consumers to stay alert to changes in fuel prices, as these not only affect wallets at the pump but can also influence transportation costs and, consequently, overall inflation. The lack of subsidies could raise concerns, especially with expectations of increases in international oil prices. Staying informed and considering alternatives, such as using public transport or more fuel-efficient vehicles, can be key to navigating this scenario.
