Background on Rolando Silva and the Instituto Mexicano de Contadores Públicos (IMCP)
Rolando Silva, the Fiscal Vice President of the Instituto Mexicano de Contadores Públicos (IMCP), recently discussed the potential impact of rising oil prices on Mexico’s fuel subsidies. The IMCP is a prominent professional organization for certified public accountants in Mexico, providing guidance and insights on economic matters.
Current Situation with Fuel Subsidies
For the past ten consecutive weeks, the Mexican federal government has not provided fiscal stimuli to the Impuesto Especial sobre Producción y Servicios (IEPS) for gasoline and diesel. This stability in subsidies has been maintained due to relatively stable oil prices over recent months.
Oil Price Increase and Its Implications
However, the recent surge in oil prices, triggered by the conflict between Iran and Israel, has prompted Silva to suggest reactivating these fiscal stimuli. This move aims to prevent gasoline and diesel prices from reflecting the increased oil costs, thereby avoiding a “gasolinazo” – a sudden and substantial rise in fuel prices.
Positive Impact on Public Finances
Despite the potential need for reactivating fuel subsidies, Silva acknowledges that the oil price increase could also have a positive effect on public finances. An oil production and export revenue surplus might emerge as a result.
IEPS Revenue and Recent Trends
In the first months of 2025, compared to the previous year, real IEPS revenue has decreased by 1.2%. Despite fewer fiscal stimuli being granted to combustibles this year, the total IEPS revenue amounted to 268,447 million pesos.
Oil Price Surge Details
The conflict between Iran and Israel has led to a 9.71% increase in the US West Texas Intermediate (WTI) oil price, reaching 75.11 USD per barrel – its highest level since January of the previous year.
Key Questions and Answers
- What are the current fuel subsidies status in Mexico? The Mexican federal government has not provided fiscal stimuli to the IEPS for gasoline and diesel for ten consecutive weeks due to stable oil prices.
- How might the recent oil price surge affect Mexico’s fuel subsidies? Rolando Silva, the Fiscal Vice President of IMCP, suggests reactivating these subsidies to prevent a sudden rise in fuel prices.
- What are the potential positive impacts of rising oil prices on Mexico’s public finances? The oil production and export revenue surplus could positively affect Mexico’s public finances.
- What has been the trend in IEPS revenue during the first months of 2025? Real IEPS revenue has decreased by 1.2% compared to the same period in the previous year, despite fewer fiscal stimuli being granted to combustibles.
- What caused the recent surge in oil prices? The conflict between Iran and Israel has led to a 9.71% increase in the US West Texas Intermediate (WTI) oil price.
