Introduction
An analysis by the Center for Studies of Public Finances (CEFP) has uncovered a significant disparity between the states that collect the most Impuesto Especial sobre Producción y Servicios (IEPS) revenue from gasoline and diesel, and those that receive the largest shares of this revenue through participation.
Revenue Distribution (2018-2023)
From 2018 to 2023, IEPS revenue collection for gasoline and diesel was concentrated in the following states:
- Ciudad de México: 41.6%
- Veracruz: 26.6%
- Tamaulipas: 10.6%
Meanwhile, states with high vehicle demand, such as the State of Mexico (16.6%) and Jalisco (7.9%), received no IEPS revenue, as the tax is primarily calculated based on the registered domicile of petroleum and commercialization companies, many located in Ciudad de México, Veracruz, or Tamaulipas. This leaves high-demand vehicle states disadvantaged, as they pay the same per-liter tax but do not receive proportional resources for their actual consumption.
Transferences
Between 2018 and 2023, a total of 142,894.8 billion pesos were transferred to federal entities through IEPS on combustibles:
- 82% (9/11 parts) were ordinary participations, totaling 116,912.2 billion pesos.
- 18% (2/11 parts) formed the Compensation Fund (Foco), intended exclusively for the 10 states with the lowest PIB per capita not related to mining or petroleum.
The revenue is divided into two parts: 82% (9/11 parts) are distributed to all entities based on their reported real consumption by Petróleos Mexicanos (Pemex) and permit holders. The remaining 18% (2/11 parts) form the Compensation Fund (Foco), exclusively for infrastructure, road, water, urban mobility, and environmental protection projects.
Foco’s Evolution
Created in 2007 to compensate for projected petroleum income decline and strengthen state finances, the Foco initially required resources to be allocated exclusively to infrastructure projects. However, in 2008, the Supreme Court of Justice of the Nation (SCJN) declared this provision unconstitutional, transforming the Foco into a freely disposable fund.
During the analyzed period, Chiapas, Guerrero, and Oaxaca were the main recipients of Foco resources, receiving 4.051, 3.103, and 3.026 billion pesos, respectively.
Performance Analysis (2018-2023)
The analysis of 2018-2023 reveals a negative national performance, with an average reduction of 3.1% in transferred resources through the Foco.
- States like Zacatecas, Oaxaca, the State of Mexico, and Hidalgo experienced sustained reductions.
- Veracruz, Nayarit, Michoacán, and Morelos saw exceptional growth in some years, with increases over 900%, without clear justification.
During the five-year period, 116,912.2 billion pesos were allocated through participations:
- The State of Mexico was the primary beneficiary, receiving 12,191.9 billion pesos.
- Jalisco followed with 7,954.7 billion pesos.
- Veracruz received 6,925.3 billion pesos.
Despite the Ciudad de México collecting 41.6% of initial revenue, it received less through participations—6,468.1 billion pesos.
Aguascalientes, Tlaxcala, and Campeche received the least, with 1,080.4, 1,078.1, and 1,115.3 billion pesos, respectively.
The pandemic severely impacted these transfers in 2020, with real value dropping by 22.6%. Although there was a 17.8% recovery in 2023, it did not compensate for the accumulated reduction over the six-year term.
Recommendations
With an estimated 473,578 billion pesos for IEPS on combustibles in 2025, representing 66.3% of the total estimated impuesto amount, the CEFP emphasizes analyzing IEPS revenue per federal entity and the distributed federal participation amounts.
Key Questions and Answers
- Q: What is the IEPS? A: Impuesto Especial sobre Producción y Servicios, a tax on gasoline and diesel in Mexico.
- Q: What is the discrepancy found by CEFP? A: The states collecting the most IEPS revenue do not always receive the largest shares through participation.
- Q: How is IEPS revenue distributed? A: 82% goes to all entities based on reported consumption, while 18% forms the Compensation Fund (Foco) for specific projects.
- Q: What happened to the Foco? A: Initially intended for infrastructure projects, it became a freely disposable fund after the SCJN’s 2008 ruling.
- Q: How have transferences evolved from 2018-2023? A: There has been an average reduction of 3.1% in transferred resources through the Foco, with some states experiencing significant growth.
