Mexico Reduces Fuel Subsidies for Magna and Diesel in Late June

The Mexican government has scaled back fiscal stimulus on gasoline and diesel for the week starting June 27, reducing support for Magna gasoline and diesel while maintaining zero subsidy for Premium fuel, according to official data from the Secretariat of Finance (SHCP).

Subsidy Reduction

For the period June 27 to July 3, the fiscal stimulus for Magna gasoline drops to 8.73% (0.5850 pesos per liter), and for diesel to 14.63% (1.0776 pesos per liter) Source: Milenio. In contrast, the previous week (June 20–26) saw higher support: Magna at 9.89% (0.66 pesos) and diesel at 20.89% (1.53 pesos) Source: Heraldo de México. Premium gasoline has had no subsidy since June 20 Source: Milenio; Heraldo de México.

Impact on Consumers

As a result, drivers pay more IEPS tax per liter: Magna at 6.1151 pesos tax, diesel at 6.2858 pesos, and Premium at 5.6579 pesos (unchanged) Source: Milenio. National average prices as of June 26 are: Magna 23.69 pesos/liter, Premium 28.48 pesos, diesel 27.12 pesos Source: Heraldo de México. Regional variations exist, e.g., in Mexico City Magna averages 23.81 pesos Source: Heraldo de México.

• The SHCP adjusts stimulus weekly based on exchange rates, international prices, and logistics costs Source: Milenio.
• The Profeco continues verification operations at gas stations to ensure compliance Source: Heraldo de México.

What's Next

With global oil prices and the peso-dollar exchange rate influencing future adjustments, the downward trend in subsidies may persist, affecting household budgets.