Starting today, March 12, and until the 18th of this month, a 100 percent stimulus will come into effect on the Special Tax on Production and Services, IEPS, applicable to gasoline, in all its octane ratings, and to diesel.
With this, the Ministry of Finance and Public Credit, SHCP, will stop charging $5.49 pesos per liter of gasoline, from the lowest to 91 octane (or “green”, as it was previously known), $4.63 pesos per liter of gasoline, from the highest at 91 octane (or “the red one”, as it was previously known), as well as $6.03 pesos per liter of diesel.
In addition, to the 100 percent stimulus on IEPS, through a decree published yesterday, the SHCP will grant other incentives of $3.87 pesos per liter of gasoline less than 91 octane, $2.74 pesos per liter of gasoline greater than 91 octane and $5.23 pesos per liter of diesel.
Let us remember that the IEPS is an indirect tax which is modified every year through a proposal from the SHCP, approved by the federal Chamber of Deputies, a tax that is levied on the production, sale or import of fuels and is paid by the final consumer, who loads the gasoline , so it does not appear broken down on the invoice, as it does appear on it, the Value Added Tax, VAT.
It is not the first attempt to stop the rise in gasoline prices in the country, a campaign promise by López Obrador. Last week, on the 4th, certain credit incentives for this tax had been granted. Today’s proposal is more aggressive, and with it, the Public Treasury seeks to use the mechanisms at its disposal to avoid higher inflation than forecast for this first quarter.
It is a difficult time, Russia’s war against Ukraine has the world markets nervous. Yesterday, the price of a barrel of crude oil was above $100 US dollars, a price that had not been reached since July 2014, since the beginning of a decline in prices to its most critical point, reached with the covid crisis. in March 2020, where the price of crude oil “touched” a few cents per barrel.
The valid question is why, if the government, through the SHCP, grants a fiscal stimulus, do not lower fuel prices? The answer is not easy, but we can say that these stimuli are not aimed at lowering prices, but are focused on avoiding further price increases or sudden changes that impact the final consumer. There is no doubt that gasoline will have to continue rising gradually, since inflation will naturally generate price increases in all things.
We know that the price of fuels is made up of various costs, such as production, the exchange rate for a barrel of oil, transportation costs, and taxes are just one element of the equation.
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