Overview of Current Situation
As of early April, the Mexican federal government has removed any fiscal support for Magna, premium, and diesel gasoline. Consequently, motorists will have to pay the full Impuesto Especial de Producción y Servicios (IEPS) rates during the December holiday season. Here are the current IEPS rates:
- Magna gasoline: $6.45 per liter
- Premium gasoline: $5.54 per liter
- Diesel: $7.09 per liter
IEPS Revenue Growth in 2025
Due to the absence of fiscal incentives for gasoline and diesel, as well as the collection of full IEPS rates, revenue from these taxes has grown by double digits in 2025. From January to November 2025, IEPS revenue from gasoline and diesel amounted to 192,288 million pesos, marking a 10% real growth compared to the same period in 2024.
Current Prices of Gasoline and Diesel
Despite the federal government’s removal of support for gasoline, the price of regular or Magna gasoline has decreased in 2025. This is attributed to a voluntary agreement between the government and the gasoline sector to cap the price at 23.99 pesos per liter.
- As of December 21, regular gasoline is sold at an average national price of 23.38 pesos per liter, which is 2.46% or 59 centavos cheaper than the price at the end of 2024.
- Premium gasoline, or the red gasoline, is sold at 25.88 pesos per liter, a 1.97% or 50 centavos increase in 2025.
- Diesel has an average price of 26.42 pesos per liter, a 2.84% or 73 centavos rise in the year.
Besides the voluntary agreement signed between the federal government and the gasoline sector on February 28, another factor that has prevented significant increases in gasoline and diesel prices in 2025 is the decline in international oil prices. In 2025, the U.S. West Texas Intermediate (WTI) oil price dropped by more than 20%.
Key Questions and Answers
- What is the current situation with gasoline and diesel prices in Mexico? The Mexican federal government has removed fiscal support for gasoline and diesel, leading to full IEPS rates. Regular gasoline has decreased in price due to a voluntary agreement, while premium and diesel have seen modest increases.
- What are the current IEPS rates for gasoline and diesel? Magna gasoline is $6.45 per liter, premium gasoline is $5.54 per liter, and diesel is $7.09 per liter.
- How has IEPS revenue performed in 2025? IEPS revenue from gasoline and diesel has grown by double digits in 2025, reaching 192,288 million pesos from January to November.
- What factors have influenced gasoline and diesel prices in 2025? The absence of fiscal incentives and the voluntary agreement between the government and gasoline sector have contributed to stable prices. Additionally, the decline in international oil prices has further supported price stability.
