Background on Pemex and its Significance
Petróleos Mexicanos (Pemex) is Mexico’s state-owned petroleum company, responsible for exploration, production, refining, and marketing of oil and petroleum products. As the primary source of energy in Mexico, Pemex plays a crucial role in the country’s economy and energy security. Understanding its financial situation is essential for assessing Mexico’s overall fiscal health.
Decline in Pemex’s Share of Oil Rental Income
In the first half of 2025, Pemex received 67% of the oil rental income, a decrease from the 97% it obtained in the same period last year. The total oil rental income for Mexico in the first half of 2025 was 143,949 million pesos. Of this amount, Pemex secured 67% (95,953 million pesos), while the federal government received 33% (47,996 million pesos).
Historical Context and Comparison
- In 2024, Pemex held 79% of the 958,871 million pesos in oil rental income, while the federal government received 21%.
- The real oil rental income in the first half of 2025 decreased by 15% compared to the same period in 2024.
Reasons for the Shift
Jorge Cano, coordinator of the public spending program México Evalúa, explained that the decline in Pemex’s share of oil rental income is due to reduced crude production by Pemex over several years.
“The decline in production is attributed to the natural exhaustion of oil fields, as well as reduced investment by both the government and Pemex in exploration and production,” Cano stated.
Tax Condonations and Decrees
Cano also highlighted that the shift in Pemex’s share of oil rental income is linked to the decrease in tax condonations since the beginning of the current administration.
- In 2024, under the previous administration, several unilateral decrees were issued to waive tax payments for Pemex, primarily the Derecho de Utilidad Compartida (DUC).
- However, since the new administration took office, only one decree has been published (in November 2024) to postpone DUC payments for October, not to waive taxes.
- Cano emphasized that it is too early to conclude that the discretionary use of decrees to waive Pemex’s taxes has ended.
Government Support for Pemex
Despite the reduced share of oil rental income, the Mexican government continues to support Pemex through direct cash transfers.
“In the first half of 2025, the government transferred 61,000 million pesos to Pemex via the Secretariat of Energy, which is 4,000 million pesos more than in the same period last year,” Cano pointed out.
Key Questions and Answers
- Q: Why has Pemex’s share of oil rental income decreased? A: The decline is due to reduced crude production by Pemex over several years, coupled with decreased investment in exploration and production.
- Q: What role do tax condonations play in this situation? A: Tax condonations have decreased since the beginning of the current administration, leading to a smaller share of oil rental income for Pemex.
- Q: How does the Mexican government support Pemex financially? A: The government provides direct cash transfers to Pemex, which amounted to 61,000 million pesos in the first half of 2025.
