During the past year, the revenue obtained by the treasury from oil managed to compensate for the fall and lower collection than expected that occurred in the Special Tax on Production and Services (IEPS) on gasoline, according to data released by the Secretariat Treasury and Public Credit (SHCP).
In 2021, according to the Federation Revenue Law, a collection of 936.765 million pesos was expected from oil revenues; however, the recovery of international oil prices allowed 1 trillion 156.522 million pesos to enter in the 12 months of last year.
With this, in the midst of the recovery of the economy after the Covid-19 crisis, oil revenues left an extra collection of 219,757 million pesos, an amount that is greater than the total expenditure that autonomous entities exercised last year. , of 141,473 million pesos, and also higher than the 173,163 million that were exercised in the Ministry of Health.
Oil prices pick up
“The result with respect to the program and to what was observed the previous year is explained by the higher price of oil and the effect of the registration of equity contributions from the Federal Government to Pemex, which are partially offset by the lower hydrocarbon production platform, lower internal sales due to less mobility and greater purchase of fuel for resale”, explained the Ministry of Finance in the most recent Quarterly Report on Public Finances and Public Debt.
Last year, the international price of oil showed a considerable rebound in the face of the global economic reopening, which generated a greater demand for crude oil and with it a rise in its price after, in 2020, it even reached negative numbers.
Fiscal stimulus hits the IEPS
In contrast, IEPS collection was affected by the rise in international oil prices. Last year, this tax was expected to leave 351.585 million pesos to the treasury; however, it only achieved 222,894 million, that is, 128,691 million pesos less than projected.
In February 2021, the SHCP reactivated fiscal stimuli for gasoline in the face of the rise in oil prices, which caused fuel prices to rise, for which said benefits were applied.
At the end of 2020, the Mexican oil mix was sold at 47.16 dollars per barrel; by December 30, 2021, it was trading at $71.29, an increase of 51 percent.
Data from the Tax Administration Service show that in 2021 the treasury stopped collecting 104,076 million pesos for the fiscal stimulus for gasoline, 30 times greater than that granted in 2020, when it stopped collecting 3,446 million pesos for said stimuli.
The total amount that the government granted in fiscal stimuli to this tax exceeded the amount that the SHCP had contemplated in the Collection Waivers for 76,019 million pesos.
