Mexico’s Finance Ministry reinstated subsidies on Magna and Premium gasoline and diesel for the week of March 21–27, ending a nearly yearlong pause in the fiscal support as rising global oil prices, driven by the escalating Israel-U.S. prompted conflict in the Middle East.

The stimulus, published in the official gazette, applies to all three fuels and comes after recent increases in international petroleum prices. The subsidy offsets the Special Tariff on Production and Services (IEPS, in Spanish) which the government had not applied for almost a year.

RELATED: Sheinbaum Announces The 4th Shipment of Mexican Aid to Cuba, Defying U.S. Pressure

For the current week, the stimulus covers 24.08 percent of the IEPS for Magna gasoline, equivalent to roughly 1.61 pesos (about 9 cents) per liter; 7.47 percent for Premium, or about 0.42 pesos (2 cents) per liter; and 61.8 percent for diesel, representing approximately 4.5 pesos (25 cents) per liter.

President Claudia Sheinbaum has said her administration has fiscal mechanisms in place to absorb potential fuel price increases amid rising oil costs tied to the conflict involving the United States, Israel and Iran. The IEPS, she noted, allows the government to adjust or reduce the tax to avoid sudden price hikes for consumers.

Although Mexico is a major oil producer, it still relies on imports for a portion of its refined fuels, making domestic prices sensitive to global crude fluctuations.

IN THIS ARTICLE