A Love Favorite: Treasury Lowers Taxes on Gasoline and Diesel

For the week of February 15 to 21, the Secretariat of Finance and Public Credit (SHCP) has decided to reduce the tax applied to each liter of Magna gasoline and diesel, while the tax on Premium gasoline remains unchanged. Thus, the IEPS rate for Magna gasoline was adjusted from 5.51 pesos, corresponding to the week that ends today, Friday, to 5.36 pesos per liter. In the case of diesel, it decreased from 6.00 pesos to 5.86 pesos, while the tax on Premium per liter stayed at 5.45 pesos.

Why is this subsidy being offered? What does a liter of gasoline actually cost?

The federal government, through the Secretariat of Finance, decides to provide subsidies for fuels as a way to lessen the impact of rising international oil and energy prices. However, by granting higher subsidies, there is an effect on federal tax collection. According to PetroIntelligence, on February 14, the national average price per liter of Magna is 24.27 pesos, while Premium is at 25.74 pesos, and diesel reaches 26.16 pesos per liter.

It’s important to highlight that these reductions in tax rates benefit consumers at a time when international prices can be very volatile. Maintaining a balance between subsidies and tax revenue is crucial for the economic stability of the country. Careful management of these subsidies will help avoid negative impacts on the Mexican economy in the long run.