Announced change in IEPS subsidies will impact gasoline prices in Mexico.

The Ministry of Finance and Public Credit (SHCP) recently announced a change in subsidies for special taxes on production and services (IEPS) for fuels in Mexico, which will directly impact the prices that consumers will pay for Magna gasoline, diesel, and Premium gasoline in the week of June 29 to July 5. As published in the Official Gazette of the Federation (DOF), the subsidy for Magna gasoline will increase to 8.38%, resulting in a discount of 0.5172 cents per liter, making consumers pay 5.6580 pesos of IEPS per liter of this fuel. This increase in the subsidy represents a relief for consumers who use regular gasoline in their vehicles. On the other hand, the subsidy for diesel will be reduced to 5.15%, equivalent to a discount of 0.3498 cents per liter, making consumers pay 6.4367 pesos per liter of this fuel. Although the discount is lower compared to Magna gasoline, it still represents a relief for diesel consumers in the country. However, the situation is different for Premium gasoline consumers, who will continue to pay 100% of the IEPS, meaning they will have to pay 5.2146 pesos per liter, maintaining the same rate that has been applied throughout the year. This measure could affect consumers who prefer this higher octane fuel. The change in fuel subsidies aims to avoid inflationary pressures and ensure the country's economic stability, considering the importance of fuels in the entire production chain. It is a strategy implemented by the federal government to mitigate the impacts of oil prices on the national economy and on consumers' pockets. Regarding the national average fuel prices, according to information from PetroIntellibence.com, a liter of Magna gasoline costs 23.764 pesos, Premium costs 25.337 pesos, and diesel costs 25.432 pesos. These prices remain within the established margins, despite the changes in subsidies announced by the SHCP. In summary, the adjustment in fuel subsidies reflects the government's concern for maintaining economic stability and controlling inflation, while also seeking to provide relief to consumers amid an uncertain economic outlook. Changes in the prices of Magna gasoline, diesel, and Premium will have a direct impact on the wallets of Mexicans, who should pay attention to these modifications to plan their fuel expenses.