“We saw at the beginning of 2017, with the gasoline explosion, the widespread annoyance that it caused in the population and I believe that the government wants to avoid this inconvenience and for the same reason it is applying this subsidy policy to try to prevent the price of electricity from rising. gasoline,” he said in a conference during the presentation of the quarterly report.
The deputy governor said that the issue of gasoline incentives has been controversial since previous six-year terms since the subsidy favors the middle and upper classes more -because they can pay the price of fuel- than the lower classes.
“This policy will be able to be applied up to a certain point because if the price of oil rises a lot, as the government does not want to incur a deficit to finance this increased spending, there is a limit that will be difficult to follow,” said the deputy governor at the presentation of Baxico’s quarterly report on Wednesday afternoon.
In January, the federal government collected 11,315 million pesos for Special Tax on Production and Services (IEPS), less than half of what was collected in January 2021, when 24,183 million pesos were reached.
The federal government planned to collect 46,562 million pesos by IEPS. After the war between Russia and Ukraine, the price of oil has seen an increase; the Mexican blend reached $105 a barrel, a price not seen since 2013.
Pemex reported that the Mexican oil mix reached 105.52 dollars this Wednesday.