The 0.62% Discount on Magna Gasoline Returns

Discounts on the Special Tax on Production and Services (IEPS) are back for the week of November 9 to 15, after two weeks without any adjustments for Magna gasoline. The Ministry of Finance and Public Credit (SHCP) announced through the Official Journal of the Federation (DOF) that the incentive will be 0.62%, which is equivalent to 0.0382 pesos per liter.

What do gasoline subsidies mean? How much does fuel cost in Mexico?

On the other hand, Premium gasoline will not receive any subsidy, so its rate will be 5.21 pesos per liter. Likewise, diesel will also have no discounts, keeping its rate at 6.78 pesos, the authorities detailed. The purpose of offering reductions on the IEPS is to mitigate the impacts of rising oil prices and their derivatives in the United States, which is Mexico's main fuel supplier. When prices stabilize or do not show significant increases, the Treasury collects these taxes fully or with slight reductions, contributing to tax revenue. These rates are adjusted weekly and published in the Official Journal of the Federation; they have a limit set each December for the following year. For example, at the end of 2023, the rates for all of 2024 were published. On November 8, the average price of Magna gasoline in Mexico was 23.92 pesos per liter, Premium was 25.30 pesos, and diesel was 25.56 pesos, according to data from PETROIntelligence.

It is important to point out that these types of incentives become crucial in an environment of volatile prices. The government's management of subsidies not only affects drivers' wallets but can also influence overall inflation and the amount of tax revenue the government manages to collect. Maintaining a balance is vital for the financial health of the country.