Overview and Key Figures
For the twelfth consecutive week, Mexico’s federal government has refrained from providing fiscal incentives to gasoline and diesel, as the regular gasoline price, known as Magna, has increased by 3 centavos over the past seven days. The national average price for Magna has risen from 23.39 to 23.42 pesos per liter, according to data from consulting firm PETROIntelligence.
Oil Market Developments
During this period, oil prices dropped by more than 13%, falling to $65.07 per barrel, thanks to the ceasefire agreement between Israel and Iran. Prior to this truce, oil prices soared nearly to $80 during the 12-day conflict.
Government’s Role in Fuel Pricing
The Mexican government typically adjusts fiscal incentives for gasoline and diesel based on oil prices. When crude oil increases, the government offers more fiscal incentives; conversely, when oil prices decline, these incentives are reduced.
Impact on Consumers
By withholding fiscal incentives, motorists will now have to pay the full Impuesto Especial sobre Producción y Servicios (IEPS) for gasoline, diesel, and premium gasoline until July 4. The complete IEPS rates are as follows: 6.45 pesos per liter for regular gasoline, 5.45 pesos per liter for premium gasoline, and 7.10 pesos per liter for diesel.
Key Questions and Answers
- What is the current situation with gasoline prices in Mexico? The national average price for regular gasoline (Magna) has increased by 3 centavos, rising from 23.39 to 23.42 pesos per liter.
- Why has the government stopped providing fiscal incentives to gasoline and diesel? The federal government has chosen not to offer fiscal incentives for twelve consecutive weeks, aligning with fluctuating oil prices.
- How have recent geopolitical events affected oil prices? The ceasefire agreement between Israel and Iran led to a decrease in oil prices, which had previously surged close to $80 during a 12-day conflict.
- What are the full IEPS rates for different types of fuel in Mexico? Regular gasoline (Magna): 6.45 pesos per liter, Premium gasoline: 5.45 pesos per liter, and Diesel: 7.10 pesos per liter.
