Current Prices and Recent Trends
As of Sunday, April 27, 2025, regular gasoline (Magna) is being sold at an average national price of 23.66 pesos per liter, a decrease of 4 centavos over the past two weeks, according to data from consultancy PETROIntelligence.
The federal government has, for the third consecutive week, removed fiscal incentives for gasoline and diesel. This means motorists will now pay the full Impuesto Especial sobre Producción y Servicios (IEPS) charges.
IEPS Charges Without Incentives
From April 26 to May 2, motorists will have to pay the complete IEPS charges:
- 6.45 pesos per liter for regular gasoline (Magna)
- 5.45 pesos per liter for premium gasoline
- 7.09 pesos per liter for diesel
Falling Oil Prices
The U.S. West Texas Intermediate (WTI) oil benchmark fell by 2.6% in the week preceding April 27, 2025, trading at $63.02 per barrel. This decline came as China exempted some U.S. products from tariffs, signaling a potential easing of the trade war between the two countries.
However, the Chinese government later denied President Donald Trump’s claims that trade negotiations between the U.S. and China had already begun.
Year-to-date in 2025, the U.S. oil price has dropped by 12%, which has allowed the Mexican government to keep fiscal incentives low.
Understanding Fiscal Incentives
In Mexico, the Secretaría de Hacienda publishes weekly fiscal incentives for gasoline and diesel in the Diario Oficial de la Federación (DOF).
The amount of these incentives typically depends on the behavior of international oil prices. When oil prices rise, the government provides more incentives and collects less IEPS; when oil prices fall, incentives are reduced, and more taxes are collected.
This fiscal policy aims to stabilize fuel prices in Mexico and mitigate the impact of sudden increases in international oil prices.
In the first quarter of 2025, the federal government collected 154.167 billion pesos in IEPS, which was 23.535 billion pesos or 13% below the programmed target in the Federal Income Law (LIF).
Key Questions and Answers
- What are fiscal incentives? Fiscal incentives are reductions or exemptions from the IEPS tax on gasoline and diesel, which are adjusted weekly based on international oil price trends.
- Why were fiscal incentives removed? The Mexican government removed fiscal incentives to maintain stable fuel prices amid falling international oil prices.
- What are the current IEPS charges without incentives? Regular gasoline (Magna) is charged at 6.45 pesos per liter, premium gasoline at 5.45 pesos per liter, and diesel at 7.09 pesos per liter.
- How have oil prices affected Mexico’s fiscal policy? Declining international oil prices have allowed the Mexican government to keep IEPS charges high, contributing to revenue collection.
