According to information from Caraiva y Asociados-León & Pech and estimates of Expansiontax payments take up more than 41% of the final price at service stations, while in the US the percentage is around 14.4% of the final price at gas stations.
There is a substantial difference in these prices between different countries. As a general rule, the richest countries have the highest prices, while the poorest countries and countries that produce and export oil have significantly lower prices, Global Petro Price detailed.
“An exception is the US, an economically advanced country with low gasoline prices. Price differences between countries are due to different taxes and subsidies for gasoline. All countries have access to the same oil prices in international markets, but different taxes are imposed,” highlighted the information and analysis center.
In Mexico the tax burden changes every week, specifically due to the federal Special Tax on Production and Services (IEPS) that is charged on fuels. When crude oil prices rise, the Treasury grants subsidies or discounts to this IEPS, but when oil prices remain stable or do not change abruptly, the Treasury does not give subsidies to this fee, and charges it at 100%, which is what happened in most of 2024.
This has helped the collection of public revenue for this federal IEPS, according to information from the Treasury. The IEPS has grown mainly driven by the elimination of subsidies on gasoline and diesel.
Mexicans pay more than 10.05 pesos in taxes per liter of Magna gasoline; more than 40% of its average final price nationwide.
The payment of taxes on gasoline and diesel in Mexico includes four concepts; three installments for the Special Tax on Production and Services (IEPS): federal, state and CO2 emissions, in addition to the Value Added Tax (VAT).
