First, the threat by the president: “I do not want to close gas stations, pursue entrepreneurs or regulate profit margins.” Then, the proposal to the owners of the service stations: “Let’s establish a pact, an agreement voluntarily of a ‘maximum price’ of fuels among all before being closing gas stations and that we do not have to be there (sic) in the persecution of gas stations that are with extremely high prices. ”
Moreover, he continued with the contradictory peroorata that “it is not to set the price, but there is a voluntary agreement. It cannot be that a gasolinero draws 6 pesos to each liter, when the maximum that could get to get is 2 pesos and we are already talking about much ”. And “condemn that gas stations raise their prices to get profits.”
These statements of the president are a gallimatisms that denote the lousy advice he has on economic matters, but also the ideological cobwebs. What are extremely high prices? Why the maximum that the gas station could get to get two pesos? He says we are already talking about a lot, yes? Compared to what?
The gasoline price mechanism mainly contemplates the evolution of inflation, the exchange rate, fiscal stimuli, cost structure, including distribution, and international price. The president asks “to define among all how far gasoline can be worth and, from there, that there is competition and that the consumer chooses where he will load gasoline.” Really, sustaining a maximum price is difficult. In addition, there is the issue of IEPS (Special Tax on Production and Services), which for gasoline is updated annually. By 2025,
The IEPS for gasoline was set at 6.45 pesos per liter of magna, 5.45 pesos per liter of premium and 7.09 per liter of diesel. This collection, although not labeled, in the end is reinjected as financial support to Pemex. It is an important proportion of the price: if the liter of magna costs today 22.25 pesos, IEPS absorbs 30% of the price.
However, IEPS can also be used as a compensating mechanism for gasoline to strong international price increases. If, for example, the maximum “voluntary” price remains at 22 pesos, then, if an international pressure carries the price to 26, the increase could be compensated with part of the collection of the 6.45 pesos of the IEPS. But in the end, the decision is arbitrary and discretionary, because the president warned: “What we do not want is to use IEPS to finance the gain of gas stations. No, it’s not right. ” Did you understand?
A few days ago, the president insisted that she is close to achieving the “national agreement to stabilize the price of gasoline.” Like the failed PACIC of the basic basket, that pact would be a price control. It is proven that administrative controls, instead of the free evolution of the mentioned variables that would determine the price, are a fiction away from reality and become ineffective. But while the ideological tare prevails that price controls are part of the “Mexican humanism” model that discredits neoliberalism, we will continue with an economic policy with a lost compass.
