Background on the Current Situation
For the thirteenth consecutive week, Mexico’s federal government has left fuel tax subsidies for gasoline and diesel unchanged. This period coincides with stable Magna (regular gasoline) prices nationwide and an increase in oil prices.
Current Gasoline Prices
As of July 6, the average national price for regular gasoline, or Magna, is 23.42 Mexican pesos per liter, remaining unchanged from the previous week according to data from consultancy PETROIntelligence.
Meanwhile, the U.S. oil benchmark West Texas Intermediate (WTI) rose 1.5% to $66.50 per barrel during the same week.
OPEC+ Agreement and Its Impact
The price increase was fueled by market expectations surrounding the Organization of the Petroleum Exporting Countries (OPEC) and its allies’ meeting on July 4, where they agreed to boost oil production by 548,000 barrels per day in August.
This agreement may put downward pressure on international oil prices.
Complete IEPS Quotas
With the absence of fuel tax subsidies, motorists will continue to pay full Impuesto Especial sobre Producción y Servicios (IEPS) quotas until July 11.
- Regular gasoline (Magna) IEPS quota: 6.45 Mexican pesos per liter
- Premium gasoline (premium) IEPS quota: 5.45 Mexican pesos per liter
- Diesel IEPS quota: 7.09 Mexican pesos per liter
Every Friday, the Secretaría de Hacienda y Crédito Público (SHCP) announces the upcoming week’s fuel tax subsidy amount for gasoline and diesel in the Federal Register.
Typically, the government adjusts fuel tax subsidies based on crude oil prices. When oil prices rise, the government provides more subsidies; when they fall, it reduces them.
Key Questions and Answers
- What is the current price of regular gasoline (Magna) in Mexico? As of July 6, the average national price for regular gasoline is 23.42 Mexican pesos per liter.
- Why have fuel tax subsidies been suspended for 13 weeks? The Mexican government has left fuel tax subsidies unchanged for gasoline and diesel due to fluctuating oil prices.
- What are the current IEPS quotas for gasoline and diesel? Regular gasoline (Magna) has an IEPS quota of 6.45 Mexican pesos per liter, premium gasoline (premium) has a quota of 5.45 Mexican pesos per liter, and diesel has a quota of 7.09 Mexican pesos per liter.
- How does the OPEC+ agreement affect oil prices? The OPEC+ decision to increase oil production by 548,000 barrels per day in August may put downward pressure on international oil prices.
