“These negative balances in the IEPS do not have any effect on public finances because more oil revenues are being generated, in addition to a greater collection by the ISR of the companies, the impact is not negative, if not neutral, in the income In total, we are above 166,000 million pesos, so there is no lack of oil revenue, no flow is being lost,” said Gabriel Yorio, undersecretary of the Treasury at a press conference.
The Treasury official explained that without the subsidy, the cost of gasoline would be 35% higher, we would have inflation of 11%, and increases in the reference interest rates of the Bank of Mexico (Banxico) higher than those that have been recently seen.
According to the deputy governor of Banxico, Jonathan Heath, subsidies for gasoline and diesel is the measure of the Package against Inflation and Famine (Pacic) that most contributes to amortizing inflation, if they do not have these supports, inflation in Mexico it would be 11% and not 8%, as reported for the month of June by the National Institute of Statistics and Geography (Inegi).
Base Bank estimates indicate that 30% of the goods in the market are moved by motor transport that uses diesel, so this support is of great importance. Its importance is such at this time that if it were withdrawn, prices would rise significantly and it would have a political cost for the current government, according to Alfredo Sandoval, an analyst at Banco Base.
