Mexican gasoline prices are set to see significant increases this year as adjustments related to the Impuesto Especial sobre Producción y Servicios (IEPS) have taken effect. On January 2, 2025, the new prices reflect the 4.5% increase implemented at the start of the month, impacting consumers across the nation.
According to recent reports, average prices for gasoline have risen sharply, with regular gasoline (Gasolina Magna) now priced at about $24.04 MXN per liter, premium gasoline hitting $25.38 MXN per liter, and diesel standing at $25.73 MXN per liter. These figures represent substantial increments from the previous year’s averages, which had already concerned many drivers and families struggling with rising living costs.
The adjustments stem primarily from inflation-related increases to the IEPS, which plays a central role in the final pricing for fuels. These changes come at a time when many consumers are already feeling the squeeze of rising costs across various sectors, exacerbated by the need for higher transportation costs to deliver goods.
Throughout Mexico, the recent data indicates disparities among regional prices. For example, certain states have reported markedly higher fuel costs than the national average. Nayarit, for example, is noted for having the highest gasoline prices, with some stations exceeding $25.38 MXN per liter. Meanwhile, Michoacán has reported astonishing premiums at specific locations, where regular gasoline prices peaked at about $29.69 MXN per liter early this January.
To alleviate some of the immediate impacts of these price hikes, the Mexican government has introduced temporary subsidies valid from January 1 to January 10, 2025. Specifically, the government has offered a 3.57% stimulus on Gasolina Magna, effectively reducing its IEPS charge. Diesel is receiving minimal adjustments of 0.37%, but premium gasoline remains unburdened by any subsidies, leaving its impact fully intact.
Claudia Sheinbaum, the President of Mexico, has voiced concerns over the abrupt nature of price increases, stating during her year-end conference, "It is completely outside the norm... there is no maximum price for gasoline." This signals to consumers and industry watchers alike the government’s awareness of the situation and its potential ramifications.
Experts, including Alejandro Montufar, CEO of PETROIntelligence, predict significant market pressures as these pricing adjustments lead to ripple effects throughout the Mexican economy. Increased gasoline prices typically lead to higher transportation and logistics costs, which can cause the prices of consumer goods to inflate. The erosion of purchasing power, particularly among low-income families, poses real societal risks as food and other necessities become pricier.
Given the potential for added economic strain, consumers are advised to remain proactive and strategic about their fuel consumption. Maintaining vehicles well, avoiding unnecessary trips, and opting for fuel-efficient driving practices are all recommended tactics to minimize fuel expenses. Further, consumers are encouraged to utilize applications such as the Litro por Litro app managed by the Procuraduría Federal del Consumidor (Profeco) to identify the most cost-effective fueling options available nearby.
While these price increases may create upheaval, the Mexican government is advocating for balance between fiscal responsibilities and social needs. The allocated subsidies are not merely financial mitigations; they are part of broader strategies to prevent inflationary spikes, with predictions showing inflation rates may close above 4% this year and potentially affect the real income of many citizens.
Overall, 2025 promises to be another challenging year for Mexican consumers as they navigate the repercussions of increased gasoline prices spurred by government policies and market dynamics. It's particularly important for consumers to stay informed about fuel prices and available assistive measures as they adjust to these financial changes.