Government reintroduces subsidy for regular gasoline to relieve financial burden.

The federal government has decided to reintroduce the subsidy on the Special Tax on Production and Services (IEPS) for regular gasoline, in an attempt to alleviate the financial burden on Mexican consumers. This measure, which will be in effect during the week of June 15 to 21, entails a 1.58% discount on the tax applied to a liter of regular gasoline, as established in the Official Gazette of the Federation (DOF). After a month without subsidies for regular fuel, consumers will see a reduction in the final price of magna gasoline, which will decrease from 6.17 pesos to 6.0779 pesos per liter thanks to the government subsidy of 0.0973 cents. However, premium gasoline and diesel will not benefit from this subsidy and will have to be paid with the full IEPS. It is important to note that throughout the year 2024, premium gasoline has not received any IEPS subsidy, while diesel lost this support at the end of April. This government decision aims to keep gasoline prices stable for consumers and avoid inflationary pressures that could impact the country's economy. The national average price of gasoline before the implementation of this subsidy was 23.584 pesos per liter for regular, 25.2 pesos for premium, and 25.157 pesos for diesel, according to data from the Petro Intelligence agency. These prices may vary depending on the region and other factors such as the exchange rate and supply and demand in the market. The reintroduction of the IEPS subsidy for regular gasoline by the government reflects concern about the impact that rising fuel prices may have on the economy and consumers' wallets. Although this benefit does not extend to premium gasoline and diesel, it is expected to help mitigate the impact of increases in the cost of living for Mexicans. In a context where inflation remains relatively high, the return of the IEPS subsidy for regular gasoline can be seen as a measure to contain price increases and ensure the country's economic stability. However, it is important to closely monitor the evolution of this situation and be attentive to future decisions that may affect the cost of fuels and their impact on the Mexican economy.