New year, new prices for gas in Mexico.
Starting January 1, 2025, gasoline prices in Mexico will see a 4.5% increase for both types of gasoline. This rise is attributed to the increase in the Special Tax on Production and Services (IEPS) applied to gasoline and diesel.
In the coming days, the Ministry of Finance and Public Credit (SHCP) is expected to announce details on this annual quota adjustment, which will also affect alcoholic beverages, cigarettes, soft drinks, snacks, and sweets, among other items. According to the Mexican Institute of Public Accountants (IMCP), the IEPS will experience a 4.5% hike in 2025, which will directly impact consumer expenses.
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The Government of Mexico and the Tax Administration Service (SAT) explain that the IEPS is an indirect tax; it is not paid directly by taxpayers but is passed on to or charged to clients (except in the case of imports) and reported to the SAT. “According to Article 1 of the IEPS Law, it is a tax applied on the sale and import of certain products, such as gasoline, diesel, alcoholic beverages, beer, manufactured tobacco, soft drinks, junk food, and other goods, as well as on the provision of certain services.”
First introduced in Mexico in 1980, the IEPS is a crucial tool for the government to manage revenue and regulate specific sectors. It’s important to note that this change still requires publication in the Official Gazette of the Federation (DOF) before it takes effect. Additionally, it should be noted that each gas station sets its prices based on supply and demand within the area.
