Elimination of fiscal incentives for regular gasoline: Impact on economy and society

The Ministry of Finance and Public Credit (SHCP) has announced that for the week of May 18 to 24, the price per liter of Magna gasoline, the most widely consumed in the country, will not have any type of subsidy, discount, or fiscal stimulus. This decision marks a significant change, as since February 7, a stimulus had been applied to this fuel, which will now be completely eliminated, resulting in a Special Tax on Production and Services (IEPS) fee of 6.17 pesos per liter. It is important to highlight that this adjustment in the IEPS fee for Magna gasoline comes at a time when crude oil prices have experienced an escalation, leading the Ministry of Finance to take measures to cushion this increase through discounts in IEPS fees. However, given the current stability in oil prices, it has been decided to charge the full fee without any type of stimulus, which will contribute to the collection of tax revenues. On the other hand, diesel, mainly used in the transportation of goods, will also face its fourth consecutive week without subsidy, with an IEPS fee of 6.78 pesos per liter. Likewise, Premium gasoline will maintain a price of 5.21 pesos per liter in terms of IEPS, without any discounts applied. Regarding fuel prices in Mexico, according to data from the agency PETROIntelligence, on Friday, May 17, the following average values per liter were recorded: 23.49 pesos for Magna gasoline, 25.29 pesos for Premium, and 25.14 pesos for diesel. These prices reflect the market reality and the influence of factors such as the international price of oil and the fiscal policies implemented by the government. The decision of the SHCP to eliminate fiscal incentives for Magna gasoline and other fuels for the next week has generated various reactions in the public opinion, especially among consumers and sectors related to transportation and logistics. Some experts point out that this measure could impact companies' operating costs and citizens' wallets, which could result in an increase in prices of products and services. It is essential for authorities to continue monitoring closely the evolution of fuel prices and making decisions that seek to balance tax collection with the impact on the economy and the well-being of the population. Transparency in the application of fiscal policies and effective communication with the public will be key to maintaining confidence in the tax system and government decisions on economic matters. In summary, the elimination of fiscal incentives for Magna gasoline and other fuels starting next week reflects the need to adjust tax policies in response to fluctuations in oil prices and the current economic situation. This measure poses challenges and opportunities, and it will be crucial to closely monitor its impact on the economy and society in general.