The national oil company Petróleos Mexicanos (Pemex) will remain at the end of this six-year term as the most indebted company in the sector worldwide, in addition to continuing to suffer various production and viability problems.
Beyond that, Pemex will also be less profitable for Mexicans, since that will provide fewer resources than it did a few years agowhile it does not stop sucking public money to alleviate its financial situation.
The above emerges from an analysis prepared by the Center for Economic and Budgetary Research (CIEP), called “Fiscal and property support for Pemex. Net oil income”, prepared by the organization.
The CIEP explains how in recent years, that is, in this six-year term, support for Pemex has been extensive with the aim of improving its financial situation. These resources, however, are not free since they imply great effort and cost for Mexico’s public finances.
Although the current government did not promise greater profitability for Pemex, it did assure that the oil company would bring greater benefits to the country and that in 6 years the critical situation of the company would be “turned around.”
Both things apparently will not be fulfilled if we stick to the company’s public data, as well as the analyzes carried out by experts based on these figures.
Pemex, less profitable: the causes and figures
The Center for Economic and Budgetary Research (CIEP) considered the effective income of the parastatal, and subtracted the government’s fiscal and patrimonial support to determine Pemex’s net contribution to public finances; That is, it measured its profitability for the country.
For example, Between 2015 and 2018, federal government support accumulated a total of 425,389 million pesoswhile oil income accumulated a total of 2 trillion 406 billion pesos.
The above means that, for each peso received by the Federation, Pemex returned 5.7 pesos to the country’s public coffers.
In contrast, between 2019 and the second quarter of 2023, Pemex received one trillion 562 billion pesos from the Federation, while oil income totaled 2 trillion 168 billion pesos. The above means that, for every peso that Pemex received in support from the Federation in said period, contributed only 1.4 pesos to the country’s finances.
According to the CIEP, it stands out that in 2021 the federal government’s support exceeded Pemex’s contributions. In other words, Specifically, in that year Pemex was totally “maintained” by the Mexicanssince with our taxes we contribute more to their finances than the company contributed to the public coffers.
Among some of the important causes of the decrease in Pemex’s profitability for public finances, the facts stand out that from 2015 until the second quarter of 2023the fiscal stimuli and the reduction of the Shared Profit Right (DUC) have caused a collection waiver of 720 thousand 836 million pesos.
Likewise, Pemex’s contributions reached a total of 1 billion 149 thousand million pesos, already affected by this collection waiver and ultimately impacted oil income.
The CIEP also estimates that by 2024, transfers from the Mexican Petroleum Fund (FMP) will be 40.7 percent lower than what was approved in the 2023 revenue law.
Nonetheless, The federal government will support Pemex with 241,582 million pesos to face your financial situation.
The CIEP called for, based on the figures previously described, as well as the situation of the oil company and in view of the discussion and eventual approval of the initiative of the Income Law of the Federation (ILIF) 2024, with a deadline for this October 20, the income that the Federation will receive is contemplated and discussedcontemplating the financial situation of Pemex and its participation in public income.
In other words, perhaps the time has come to review and weigh in its proper dimension the weight of the resources that Pemex contributes to the state.
Unfortunately, it would not be good news for national finances since at least in the five years of this administration, the oil company contributes less and less and is less profitable for the country.
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