In 2024, prices of gasoline and diesel in Mexico they skyrocketed, reaching historical highs with increases of up to 8.5%, this due to the cut that the federal government applied to fiscal stimuli.
Magna rose almost two pesos
Magna gasoline rose 8.54% or 1.89 pesos, to 23.99 pesos per liter, while Premium increased 5.36% or 1.29 pesos, to 25.35 pesos, according to data from the Energy Regulatory Commission (CRE) and the PETROIntelligence platform.
For its part, diesel was not far behind, with an increase of 6.33% or 1.53 pesos, to 25.71 pesos per liter.
Furthermore, at some point during the year, all three fuels They reached their highest price in history.
La Magna reached a maximum price of 24.11 pesos per liter in mid-August; The premium reached its highest price of 25.65 pesos also in the middle of the eighth month, while diesel reached its peak on November 30, at 25.71 pesos.
Less stimulus, more taxes
The increase in the price of gasoline and diesel was due to the fact that the Mexican government considerably reduced the tax incentives in an attempt to recover lost income in previous years.
Magna received a stimulus of only 35.92 cents per liter, 82.25% less than in 2023. Diesel had an even bigger cut, with a stimulus of 20.35 cents, 90.75% less. At the same time, Premium did not see any fiscal support this year.
Because of this, consumers had to pay much more fuel taxes in 2024, which generated an increase in prices at service stations.
The government was also able to cut the stimuli thanks to the fact that in 2024 international oil prices fell and were at a lower level than in previous years.
Collection on the rise
As fewer fiscal stimuli were granted in 2024, tax collection Special Tax on Production and Services (IEPS) for gasoline and diesel recovered significantly this year.
From January to October, the federal government collected 317,803 million pesos for IEPS on gasoline and diesel, an increase of 65.57% in real terms compared to the same period of the previous year, according to data from the Ministry of Finance and Public Credit (SHCP). ).
It is the oldest collection of this tax in the first ten months of the year since 2016, when in that same period the government obtained 357,666 million pesos for the same concept.
Taxes and oil, the most expensive
In Mexico, taxes and the price of oil are the two main components of the final price of gasoline that motorists pay in the service stations when they go to refill their tank.
Around two out of every three pesos paid by the consumer for each liter of gasoline are taxes and the cost of crude oil.
Hence, the behavior of taxes (depending on the level of fiscal stimulus that the government is granting) and oil are fundamental to understanding the trajectory of oil prices. gasoline and diesel in Mexico.
