Background on the Key Players
The Secretariat of Energy (SENER) and the Secretariat of Finance and Public Credit (SHCP) are Mexican governmental bodies responsible for overseeing energy policy and fiscal matters, respectively. These secretariats play a crucial role in maintaining the country’s economic stability and ensuring energy security.
The National Strategy for Gasoline Price Stabilization
Since March 1, 2023, the National Strategy for Gasoline Price Stabilization has been in effect. This strategy is a voluntary agreement between gasoline retailers aimed at keeping the price of regular gasoline (with an octane rating below 91) under 24 Mexican pesos per liter.
Impact of IEPS Update
The update to the Special Production and Services Tax (IEPS) applicable to gasoline due to inflation, effective January 1, will not affect the National Strategy in any of its components. Consequently, there will be no increase in the final cost for consumers.
Collaborative Efforts
The stabilization agreement was coordinated jointly by the Secretariats of Energy, Finance, Environment and Natural Resources, along with the National Energy Commission, the Tax Administration Service, the Federal Consumer Procurator, and the National Agency for Industrial Safety and Environmental Protection in the Hydrocarbons and Petroleum Sector.
Why This Matters
Gasoline price stability is vital for Mexico’s economy, as it directly impacts inflation and the purchasing power of consumers. With rising global energy prices, maintaining a stable gasoline price helps control the overall cost of living and supports economic growth.
Key Questions and Answers
- What is the National Strategy for Gasoline Price Stabilization? It’s a voluntary agreement between gasoline retailers, coordinated by key Mexican governmental bodies, aimed at keeping regular gasoline prices under 24 Mexican pesos per liter.
- When was this strategy implemented? The strategy went into effect on March 1, 2023.
- How does the IEPS update affect the strategy? The IEPS update, due to inflation, will not impact the National Strategy for Gasoline Price Stabilization or result in increased costs for consumers.
- Which governmental bodies are involved in this strategy? The Secretariats of Energy, Finance and Public Credit, Environment and Natural Resources, along with the National Energy Commission, Tax Administration Service, Federal Consumer Procurator, and the National Agency for Industrial Safety and Environmental Protection in the Hydrocarbons and Petroleum Sector are all part of this collaborative effort.
