Heavy Taxes Make Mexican Gas Prices Soar
Mexican drivers face some of the highest gas taxes globally, making their fuel costs significantly more than those in countries like Saudi Arabia.
Tax Burden Comparison
- Mexico: 10.28 pesos in taxes per liter
- India: 7.93 pesos in taxes per liter
- Saudi Arabia: 1.67 pesos in taxes per liter
Average Gas Prices Across Major Consuming Nations
Here are the average prices for regular gasoline in December, based on data from Trading Economics:
- Mexico: 23.37 pesos per liter
- Brazil: 20.13 pesos per liter
- Japan: 18.16 pesos per liter
- India: 17.62 pesos per liter
- Canada: 16.72 pesos per liter
- United States: 13.66 pesos per liter
- China: 14.74 pesos per liter
Mexican Tax Structure for Gasoline
In Mexico, two taxes are levied on each liter of gasoline: the Value Added Tax (VAT) and the Special Production and Services Tax (SPS).
- As of December 2025, the SPS tax was 6.46 pesos per liter for regular gasoline, with an additional 16% VAT.
Tax Developments in Other Countries
Japan plans to reduce gas prices by three pesos starting in 2026, as they are eliminating a temporary tax introduced in 1974 to finance road construction projects.
Conversely, Mexico’s federal government has updated the SPS tax rates for gasoline and diesel according to inflation, as required by law.
- Regular gasoline SPS tax increased by 3.8% (24 centavos), resulting in a new tax rate of 6.70 pesos per liter.
Ramsés Pech, the specialist mentioned, also suggests that Russia might increase gasoline taxes due to falling international crude oil prices.
In the United States, low gas prices are expected to help control inflation and contribute to lower interest rates from their central bank.
China, too, could see reduced gas prices thanks to significant discounts on crude oil purchases, especially from Russia.
