"Government eliminates gasoline subsidies just before the national holidays in Mexico."

The Secretary of Finance and Public Credit (SHCP) has announced that, for the week of September 7 to 13, the Magna, Premium, and diesel fuels will not receive subsidies on their Special Tax on Production and Services (IEPS) rates. This decision comes at a critical moment, just before the long weekend for the national holidays, which has sparked various reactions among consumers and economic experts. For the mentioned week, the rate for Magna gasoline will be set at 6.17 pesos per liter, while Premium will be 5.21 pesos, and diesel will reach 6.78 pesos. These amounts are significant, considering that gasoline prices in the country have shown an upward trend. In fact, on Friday, September 6, the average price of Magna gasoline was reported at 24.11 pesos per liter, with Premium and diesel reaching prices of 25.59 and 25.64 pesos, respectively. Historically, the Treasury has adjusted the IEPS rates based on fluctuations in international oil prices and their derivatives. This mechanism aims to soften the impact of rising prices on Mexican consumers. However, so far in 2024, Magna gasoline has been the only fuel to receive small subsidies, unlike Premium and diesel, which have faced full charges of their IEPS rates. This situation reflects a fiscal strategy that seeks to balance tax collection with the protection of citizens' purchasing power. It is worth mentioning that subsidies for Magna gasoline were nonexistent between May and June of this year, which generated concern among drivers and businesses that depend on fuel. The return of the subsidy in June, although temporary, offered momentary relief to consumers, but the elimination of these incentives for the national holiday week has reignited the debate over the country's dependence on international prices and the lack of a more stable scheme to protect Mexicans from these fluctuations. Subsidies act as a kind of cushion against international price variations, allowing consumers to pay amounts more in line with their capacity and preventing an immediate impact on inflation. However, when prices remain stable or show slight variations, the SHCP tends to fully collect the tax, which in turn strengthens the state's finances. The impact of the Treasury's decision is visible in public opinion, where many citizens express concern about the possibility of fuel costs becoming an additional burden on their family economy. With the return of high prices, the lingering question is how families and businesses will adapt to this new landscape, especially in a context where fuel is essential for mobility and logistics. The IEPS rates are published weekly in the Official Gazette of the Federation and are part of a system that seeks, at least in theory, to guarantee some stability in prices for consumers. However, the fact that subsidies have become increasingly scarce in recent years highlights the system's vulnerability to external factors, such as the volatility of the oil market. Meanwhile, the situation once again raises the need to review energy policies in Mexico. Analysts suggest that alternatives to dependence on fossil fuels should be sought and the use of renewable energies promoted, which could reduce the country's exposure to international fluctuations and provide relief to consumers in the long term. In conclusion, the Treasury's decision to eliminate subsidies for Magna gasoline and other fuels during a critical period like the national holidays has left a sense of uncertainty among the public. With a context of rising prices, the evolution of this situation will be crucial to observe how consumer behavior adjusts and how fiscal policies adapt to the economic reality of the country.