Introduction to Petróleos Mexicanos (Pemex)
Petróleos Mexicanos, commonly known as Pemex, is Mexico’s state-owned petroleum company. Established in 1938, Pemex plays a crucial role in Mexico’s energy sector and economy. As the nation’s largest company by revenue, Pemex is responsible for exploring, extracting, refining, and marketing oil and natural gas. However, in recent years, the company has faced significant financial challenges.
Financial Challenges and Government Support
By the end of September 2024, Pemex’s debt had surpassed $100 billion USD, according to the company’s data. In response to these financial difficulties, the federal government announced the Strategic Plan 2025-2035 for Pemex, aiming to make the company financially independent by 2027. This plan includes creating a $250 billion peso fund for investment projects within Pemex.
Transfer Amounts and Their Impact
According to Mexico Evalúa, a civil organization, the government’s transfers to Pemex have reached unprecedented levels in late 2025. These transfers have significantly impacted public spending and the government’s ability to generate revenue.
- Transfer Amounts: Between January and November 2025, the government transferred 392 billion pesos to Pemex via the Ministry of Energy. This amount surpassed the approved budget line for 2025, which was 136 billion pesos.
- Impact on Public Spending: These transfers have increased overall public spending, which grew by 5.9% annually to reach approximately 7.47 trillion pesos. However, if Pemex transfers are subtracted, the remaining public income would be 6.2% less than projected.
- Public Spending Growth: Total public spending in the first eleven months of 2025 was 8.46 trillion pesos, growing annually by 2.5%. This is 35 billion pesos higher than planned, but if Pemex support is excluded, public spending would have been 2.6% below the programmed amount.
Consequences of Government Transfers
Mexico Evalúa’s analysis indicates that the government transfers to Pemex have eroded the state’s revenue-generating capacity. These transfers, counted as public expenditure, have led to an increased overall public spending that surpasses the planned amounts.
As a result, the combined effect of increased public spending and diminished revenue collection efforts has produced a public deficit of 968.7 billion pesos. This deficit is only 10.6% less than the previous year’s deficit and ranks as the second-largest in the past 35 years.
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.
- What financial challenges does Pemex face? By the end of September 2024, Pemex’s debt had surpassed $100 billion USD.
- What is the government’s response to Pemex’s financial difficulties? The federal government announced the Strategic Plan 2025-2035 for Pemex, aiming to make the company financially independent by 2027 with a $250 billion peso fund for investment projects.
- How have government transfers to Pemex affected public spending and revenue? Government transfers have increased overall public spending, eroded the state’s revenue-generating capacity, and resulted in a public deficit of 968.7 billion pesos.
