Headline:
New Year, New Fuel Prices: Mexico Hikes Gasoline Taxes in 2025
Article:
As the clock strikes midnight to ring in New Year 2025, Mexicans are not just exchanging good wishes but also bracing for an increase in gasoline prices. The Secretaría de Hacienda y Crédito Público (SHCP) has announced an update to the tax rates for the Impuesto Especial sobre Producción y Servicios (IEPS), applicable to gasoline and diesel, effective from January 1, 2025.
President Claudia Sheinbaum and the Diario Oficial de la Federación have explained that these adjustments are aimed at maintaining the value of the IEPS relative to Mexico’s economy, taking into account the annual inflation increase.
Starting January 2025, new IEPS rates will be applied to each liter of Magna, Premium, and diesel, resulting in an estimated 4.3% increase. This adjustment, as stipulated in Article 17-A of the Código Fiscal de la Federación, is proportional to the closure of inflation, reflecting its increase.
During her morning press conference, President Sheinbaum clarified that this increase is not a new measure but rather an adjustment based on the IEPS law, which establishes increases in accordance with annual inflation:
"Inflation is closing around 4.3%, and that’s what the increase is. It’s a law that has been around for a long time. But we are working to prevent gasoline prices from increasing due to speculation."
The president also reported that the Secretaría de Energía, led by Luz Elena González, is meeting with gasoline concessionaires to analyze prices and prevent unjustified increases in the market.
While the IEPS increase is inevitable, efforts are being made to control gasoline prices and prevent unjustified increases, commonly known as "gasolinazos," ensuring that the final price of fuels remains stable.
In her own words, Sheinbaum stated:
"Our commitment is to ensure that gasoline does not increase in real terms. The only thing that can rise is what is related to last year’s inflation."
The IEPS adjustment aims to secure necessary fiscal revenues for the country’s development while maintaining a balance between fiscal update and price stability. Time will tell if this balance remains, and we encourage you to share your thoughts on whether you believe prices will remain stable or increase in the future.
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Tags:
- New Year 2025
- Mexico
- Gasoline Price Increase
