Mexico ushered in the new year with adjustments to gasoline prices following changes to the Special Tax on Production and Services (IEPS), enacted by the Secretaría de Hacienda y Crédito Público (SHCP). Effective January 1, 2025, these alterations have generated discussions among gas station operators and consumers alike, primarily due to concerns over how these fiscal policies will impact their pockets.
The government’s latest move was intended to refresh revenue collection, targeting ₱713,844 million for the year. The updated IEPS will increase the taxes on regular (Magna) gasoline by 6.45 pesos per liter, 5.45 pesos for premium gasoline, and 7.09 pesos for diesel. Fernando Carbajal, President of the National Association of Fuel Distributors (Onexpo), noted, "The increase to the IEPS has affected cities not located on the border," highlighting how these changes have unevenly impacted different regions of the country.
The new gasoline prices were first revealed through the National Gasoline Platform by Petrointelligence, which reported average costs on January 2. Regular gasoline (Magna) registered at ₱24.057 per liter, premium at ₱25.393, and diesel at ₱25.759. Price comparisons with the previous year show only marginal shifts, indicating minimal immediate impact from the new taxes. According to the data shared, these figures represent increases of just ₱0.19, ₱0.014, and ₱0.028, respectively.
Despite this year's updates, gasoline prices have not significantly deviated from last year's levels. For example, the average price of regular gasoline was reported at ₱24.03 per liter just before the holiday season. With the changes coming to effect, the price the next day was only slightly elevated, prompting questions about the anticipated impact the adjustments would have going forward.
Meanwhile, fuel retailers have expressed mixed feelings about the updated regulations. Representatives from the Fuel Distributors Association conveyed their apprehension during visits to local gas stations. "While prices have not changed significantly now, it is probable they will rise shortly," they stated, acknowledging the potential consequences of the new IEPS tax structure.
Interestingly, the prices listed vary greatly across different locales. Reports indicated the highest price for regular gasoline surged to ₱29.69 per liter in Morelia, Michoacán, and the premium variant at ₱28.50 per liter in Benito Juárez, CDMX. Conversely, Juárez, Chihuahua, registered the lowest prices, with regular at ₱17.58 per liter and premium at ₱19.70 per liter.
Claudia Sheinbaum, the President of Mexico, has consistently reassured the public amid potential fears of inflated fuel costs due to changes implemented each year. "There will not be a drastic increase, commonly referred to as 'gazolinazo,' this January," she stated during her last press conference of the previous year. The initiative to keep the increases managed seems aimed at dampening public unrest over fuel prices, which have historically stirred discontent among citizens.
The government has also taken preventive measures by urging the Secretary of Energy to convene with leaders from the gas distribution sector to implement strategies aimed at maintaining price stability and counteracting undue speculation. This proactive approach hopes to quell uncertainty among consumers as prices fluctuate, adhering to the mandates of the recent tax revisions.
Overall, the adjustments to the gasoline prices reflect both the governmental objectives of increasing revenue through the IEPS and the need to address consumer concerns about fuel costs amid inflationary pressures. With gas prices showing incremental changes rather than significant hikes initially, citizens will likely remain vigilant, monitoring any shifts as the new year progresses.
The echoes of last year’s pricing debates linger as consumers adjust to the new realities imposed by these legislative changes. Stakeholders within the fuel industry are keeping their ear to the ground, ready to react as market conditions evolve and the economic ramifications of the updated legislation play out over the ensuing months.