The Secretariat of Finance and Public Credit (SHCP) has eliminated tax incentives for gasoline just at the start of the long weekend and until March 21. The announcement was published this Friday, March 14, in the Official Diary of the Federation (DOF). The Treasury usually announces weekly the amount of support for each type of fuel, and this measure comes after recent reductions in tax incentives for Magna, Premium gasoline, and diesel in previous weeks.
Magna gasoline will lack a tax incentive starting Saturday, March 15, after having received a support of 3.2 percent last week. The amount of the Special Tax on Production and Services (IEPS) for green gasoline will remain at 6.45 pesos. As for Premium gasoline, it has not received a tax incentive for over a year and will remain without this support. Premium gasoline will have an amount of 5.45 pesos for the payment of the IEPS starting next Saturday.
On the other hand, diesel also suffered a reduction in its tax incentives, with the support completely eliminated after having received up to 3.87 percent the previous week. The IEPS for diesel will remain at 7.09 pesos after this elimination. These tax incentives aim to help drivers with the payment of the IEPS and are announced weekly through the DOF.
The elimination of tax incentives for gasoline this week occurs shortly after a 'cap' price was established for them, set at 24 pesos per liter. This measure is being implemented to prevent excessive price increases and after reaching an agreement with producers and gas station owners. Profeco maintains its 'Don't fill here' operation to ensure compliance with the limit price and will expose gas stations that exceed it.
It is important to remember that this 'cap' price applies only to Magna gasoline and does not include border areas that have additional tax incentives. Furthermore, it is expected that Pemex will ensure efficient fuel distribution throughout the country to ensure adequate supply in all regions. Despite the elimination of incentives this week, the Secretariat of Finance is committed to maintaining such incentives through the IEPS.
