Background on Pemex and its Financial Situation
Petróleos Mexicanos (Pemex), one of the world’s most indebted oil companies, has been supported by substantial financial transfers from the Mexican government. This support is crucial for Pemex to meet its financial obligations, as highlighted by the Auditor Superior of the Federation (ASF) in its individual fiscalization report for the 2024 public accounts.
Government Support in the Past Six Years
Under President Andrés Manuel López Obrador’s administration, Pemex has been a priority. The government transferred over $1 billion in real figures to the company, according to México Evalúa. These transfers aimed to finance the construction of the Dos Bocas refinery, rehabilitate existing refineries, and strengthen Pemex’s financial position.
- Direct Cash Transfers: The government directly provided Pemex with funds to improve its productive and financial standing.
- Tax Benefits: The government reduced the Shared Utility Right (DUC) and postponed Pemex’s tax payments, eventually forgiving some of these taxes.
While these measures aimed to bolster Pemex, they also resulted in the government receiving fewer resources for other essential areas like health, education, and public safety.
Future Government Support for Pemex
According to the 2026 Economic Package, the government intends to nearly double the approved budget line for Pemex in the following year. The Criterios Generales de Política Económica 2026 propose a budget line of 263,500 million pesos for Pemex, an 86% increase compared to the current year’s approval.
This support, contingent on Pemex improving its financial balance by the same margin, ensures that debt amortization payments do not affect public sector deficits. The amortization of debts will be recorded as a reduction in liabilities rather than budgetary expenditure, according to Mexico’s Secretariat of Finance under Edgar Amador Zamora.
This financial line, counted as income for Pemex, will be available for the third consecutive year before the company becomes self-sufficient, as outlined in the previously presented strategic plan.
Key Questions and Answers
- What is Petróleos Mexicanos (Pemex)? Pemex is Mexico’s state-owned petroleum company, one of the largest and most indebted oil firms globally.
- Why has the Mexican government provided substantial financial support to Pemex? The government aims to help Pemex meet its financial obligations, rehabilitate refineries, and construct new ones while strengthening its financial position.
- What measures has the government taken to support Pemex? The government has provided direct cash transfers, reduced tax burdens, and postponed or forgiven certain tax payments.
- What does the 2026 Economic Package propose for Pemex? The package proposes nearly doubling the approved budget line for Pemex, providing 263,500 million pesos to support debt amortization payments.
