Background on Claudia Sheinbaum and Her Government
Claudia Sheinbaum is the current head of government in Mexico City, serving as the Head of Government since 2018. Previously, she was the Secretary of Environmental Affairs and Sustainable Development (SEDESA) from 2017 to 2018. Sheinbaum, a prominent figure in Mexican politics with a background in science and environmental activism, has been instrumental in shaping policies related to sustainability and public services in Mexico City.
IEPS Collection Details
The Special Production and Services Tax (IEPS) collection for gasolines and diesel has reached its highest levels since 2016, according to data from Mexico’s Secretariat of Finance and Public Credit (SHCP). From January to November 2025, the IEPS collection for gasolines and diesel totaled 405,077 million pesos, marking a 7.8% real growth compared to the previous year.
Government Actions and Their Impact
Since early April 2025, the government under Claudia Sheinbaum’s leadership has ceased providing tax incentives for gasolines and diesel. This decision led to the collection of full IEPS quotas for all three fossil fuels, resulting in increased tax revenues for the Federal Government.
The full IEPS quotas in 2025 were as follows: 6.45 pesos per liter for Magna gasoline, 5.54 pesos per liter for Premium gasoline, and 7.09 pesos per liter for diesel.
Weekly Fiscal Stimulus Announcements
Every Friday, the Secretariat of Finance publishes in the Federal Register (DOF) the fiscal stimulus amount for gasolines and diesel for the following week, based on IEPS tariffs authorized by Congress for that year.
Purpose of Fiscal Stimulus
The fiscal stimulus aims to stabilize gasoline prices in Mexico by mitigating potential disruptions in international oil and gas markets. Typically, the government adjusts fiscal stimulus based on oil prices: increasing it when crude prices rise and decreasing when they fall.
Annual IEPS Tariff Updates
Each year, IEPS tariffs are updated according to annual inflation. An expected announcement of this year’s increase is anticipated in the coming weeks.
Future IEPS Revenue Projections
For 2026, the Secretariat of Finance plans to collect 473,279 million pesos through the IEPS on gasolines. The quota will be adjusted for inflation.
Comparison with Previous Year’s Expectations
Although IEPS quotas for gasolines have been increased for 2026, the approved amount in the Federal Income Law (LIF) for 2026 represents a 6.7% reduction compared to what is expected to be collected by the end of 2025 through the combustibles tax.
Key Questions and Answers
- What is IEPS? The Special Production and Services Tax (IEPS) is a tax levied on specific goods, including gasolines and diesel, in Mexico.
- Who is Claudia Sheinbaum? Claudia Sheinbaum is the Head of Government in Mexico City, previously serving as Secretary of Environmental Affairs and Sustainable Development.
- Why did the government stop providing tax incentives for gasolines and diesel? The decision aimed to increase tax revenues for the Federal Government by collecting full IEPS quotas for all three fossil fuels.
- How does the government stabilize gasoline prices? The government adjusts fiscal stimulus based on oil prices, increasing it when crude prices rise and decreasing when they fall.
- What is the projected IEPS revenue for 2026? The Secretariat of Finance plans to collect 473,279 million pesos through the IEPS on gasolines for 2026.
