Subsidy for Magna Gasoline Returns After 5 Weeks of Absence

17:46 11/10/2024 - PesoMXN.com

After five weeks without any support (subsidy) on the Special Tax on Production and Services (IEPS) applied to Magna gasoline, it has been announced that from October 12 to 18, a tax incentive of 3.93% will be provided. This subsidy, which means less revenue for the government, will amount to 0.24 pesos per liter of Magna gasoline, bringing the IEPS rate to 5.93 pesos, according to reports from the Treasury published in the Federal Official Gazette (DOF).

What are the subsidies for gasoline used for?

On the other hand, no subsidy will be applied for Premium gasoline, so the IEPS rate will be set at 5.21 pesos per liter. As for diesel, its rate will be fixed at 6.78 pesos, also without any discounts, continuing the trend for both fuels this year. When global oil and fuel prices rise, the Treasury provides a subsidy on the IEPS rate in Mexico to mitigate the price increases in the local market. Offering these subsidies means a reduction in tax revenue for the government.

Gasoline Prices According to data from Friday, October 11, the average price per liter of Magna gasoline is at 23.98 pesos, Premium at 25.38 pesos, and diesel at 25.52 pesos, according to PetroIntelligence.

It is interesting to observe how government decisions regarding fuel subsidies can influence the daily economy of citizens. While these subsidies help alleviate the impact of international oil prices, they can also lead to decreased income for the government, which could have implications in other sectors, such as infrastructure and public services. It is essential for citizens to stay informed about these dynamics to better plan their financial situations at home.