Fiscal stimulus on IEPS for fuels will remain at 100% until March 25

The measures applied by the Ministry of Finance apply to regular gasoline, premium gasoline and diesel

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Fotografía de archivo en la
Fotografía de archivo en la que un hombre despacha gasolina en Ciudad de México (México). EFE/Mario Guzmán

In order to maintain fuel prices for the benefit of consumers and so that the Mexican economy is not affected, the Excise Tax on Production and Services (IEPS) will remain at 100% until Friday, March 25, the Government of Mexico announced through the Ministry of Finance.

The above measure applies to regular gasoline (magna), premium gasoline and diesel. According to the Federal Consumer Prosecutor's Office (Profeco), the average fuel prices for this Tuesday, March 22 are as follows:

Regular gasoline: 21.32 pesos per liter.

Premium: 23.28 pesos per liter.

Diesel: 22.79 pesos per litre.

However, it should be remembered that average prices may vary according to reference costs - which are based on international oil prices and is quoted in dollars globally -, taxes, the dollar exchange rate and logistics, such as transport and storage, because if prices increase at the moment of transporting oil and refined gasoline (either in pipes or on ships), the costs will increase proportionally.

The IEPS was implemented in 1980 and is the tax paid on the production, sale and import of fuels, in this case, although it also applies to beers, soft drinks and tobaccos, for example.

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For every ten liters of Magna gasoline, Mexicans would be saving just over 50 pesos, while for Diesel the savings would be 60 pesos (Photo: Daniel Karmann/DPA)

In this way, the Mexican government will not charge until March 25 the 5.49 pesos per liter for Magna (green) gasoline and 6.03 pesos per liter for Diesel. And if the IEPS were charged, the average gasoline prices would be: Magna 27.80 pesos per liter; Premium 27.80 pesos per liter and Diesel would cost 29.13 pesos per liter.

Thus, for every ten liters of Magna gasoline, Mexicans would be saving just over 50 pesos approximately, while for Diesel the savings would be 60 pesos.

On the other hand, according to the latest report from the Center for Command, Control, Computing, Communications and Citizen Contact (C5) in Mexico City, with a cut-off as of March 21, the five petrol stations where you can get the lowest prices are:

-At the Pemex gas station located in the Benito Juárez mayor's office, in Torres Adalid and Anaxagoras, Narvarte Poniente neighborhood, where the cost per liter for the magna is 20.50 pesos and for the premium is 22.50 pesos.

- At the Cuauhtémoc mayor's office, the Pemex gas station whose address is Manuel González y Nopal, Colony Atlampa, the cost for La Magna is 21.39 pesos and for Premium is 22.89 pesos.

-The Pemex gas station located in the Tlalpan mayor's office, in the Tlalpan and San Juan de Dios Causeway, San Lorenzo neighborhood, the price of La Magna is around 20.95 pesos and that of the Premium is 22.90.

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According to C5, the Benito Juárez mayor's office can get the lowest prices to buy gasoline (Photo: Cuartoscuro)

-At the Benito Juárez City Hall, the Pemex gas station located on Avenida Xola and Xochicalco, in the Narvarte Oriente neighborhood, offers Magna gasoline at 20.99 pesos and Premium at 22.99 pesos.

-Finally, the Energy petrol station that is located in the Benito Juárez mayor's office on Avenida Tintoreto and Georgia, Nonoalco neighborhood, the price of La Magna is 21.29 pesos and that of Premium is 22.99.

According to the director of Petroleos Mexicanos (Pemex), Octavio Romero Oropeza, from 2018 to 2022 the import of gasoline and diesel was reduced by 48 percent, from 2018 to 2022, compared to 800,000 barrels daily to 436 thousand, detailed last Friday, March 18, during the ceremony commemorating the 84th anniversary of the Oil Expropriation.

He also added that of the 436,000 barrels per day that are imported, about 250,000 are refined in the Deer Park complex, which operates at 89 percent of its capacity so far.

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