Background on Petróleos Mexicanos (Pemex)
Petróleos Mexicanos, commonly known as Pemex, is the Mexican state-owned petroleum company. As Mexico’s primary energy company, Pemex is responsible for exploring, extracting, refining, and marketing oil and natural gas. Given its crucial role in the Mexican economy, any significant changes in government support for Pemex can have far-reaching implications.
Government’s Decision to Boost Spending
After months of declining public spending and underspending in line with fiscal consolidation targets, the Mexican federal government decided to increase spending in Q3 2025 to support Pemex, according to information from the Secretaría de Hacienda y Crédito Público (SHCP). This decision was reflected in the “Informe de Finanzas Públicas y la Deuda Pública” up to the third quarter of the year.
Public Spending Details
The report showed that public spending exercised amounted to 7 trillion 331 billion pesos, representing a 1% annual growth compared to the previous year. This growth came after the government allocated 253.8 billion pesos in September to Pemex for debt repurchase, which was counted as government spending.
Impact of Government Support on Pemex
According to Rodrigo Mariscal, head of the Economic Planning Unit at SHCP, this government support to Pemex does not affect fiscal balance targets. Instead, it represents an additional government expenditure that neutralizes the largest government expense with Pemex’s increased income. Without this support, total spending would have been 6.78 trillion pesos, a 2.7% decrease compared to the previous year.
Debt Emission and Repurchase
In September, the federal government issued debt worth 13.8 billion USD and repurchased Pemex bonds for another 12 billion USD, aligning with the “Plan Estratégico 2025-2030.”
Spending Breakdown
Primary Spending: This spending, intended to provide goods and services to the population, totaled 6.07 trillion pesos, including resources allocated to Pemex. Of this amount, the federal government spent 3.96 trillion pesos, a 1.7% annual increase.
Non-Programmable Spending: This spending category remained unaffected by the support to Pemex. Excluding financial costs, 1.98 trillion pesos were spent, a 3.6% annual increase.
Debt Servicing Costs: These costs continued to rise. Between January and September of the previous year, 960 billion pesos were allocated to debt service payments, an 8.6% annual increase.
Pemex Income Details
Government Support Impact: Pemex’s income also reflected government support, now counted as additional income for the company. In the first nine months of the year, Pemex’s income was 922.4 billion pesos, a 14.7% annual increase.
Excluding Government Support: Without the government support, Pemex’s income would be 668.6 billion pesos, a 16.9% annual decrease.
Income Breakdown: Pemex’s supported income totaled 691.7 billion pesos, a 6.4% annual increase compared to the previous year. The remaining Pemex income comes from the “Fondo Mexicano del Petróleo” and income tax (ISR) from contractors and assignees.
Tax Income
The SHCP reported that 4.107 trillion pesos were obtained through taxes, a 7% annual growth compared to the same period last year.
Public Income Summary
Considering the support to Pemex, public income amounted to 6.247 trillion pesos, a 7% annual growth.
Key Questions and Answers
- What is Petróleos Mexicanos (Pemex)? Pemex is Mexico’s state-owned petroleum company responsible for oil and natural gas exploration, extraction, refining, and marketing.
- Why did the Mexican government increase spending for Pemex in Q3 2025? The government decided to support Pemex after months of declining public spending and underspending, aligning with fiscal consolidation targets.
- How did this government support impact Pemex’s finances? The support resulted in additional income for Pemex, neutralizing the largest government expense with increased income for the company.
- What were the details of public spending and debt emission in Q3 2025? Public spending reached 7.331 trillion pesos, with a 1% annual growth. The government issued debt worth 25.8 billion USD and repurchased Pemex bonds for another 12 billion USD, aligning with the “Plan Estratégico 2025-2030.”
- How did Pemex’s income change with government support? Pemex’s income increased by 14.7% annually to 922.4 billion pesos, with 691.7 billion pesos attributed to government support.
