0% Tax Incentive for Regular and Premium Gasoline in Mexico
The Mexican government has decided to reduce the tax incentive for regular and premium gasoline, resulting in a slight increase in their costs.
The Ministry of Finance and Public Credit (SCHP) announced on Friday, November 10, that gasoline will no longer receive a tax incentive starting this Saturday, 2023 November 11.
According to the weekly publication in the Official Gazette of the Federation (DOF), the tax incentive for regular and premium gasoline will be 0% for the period starting this weekend.
It’s important to note that the Mexican government adjusts gasoline prices based on the international price, in addition to the tax collection incentive.
The fiscal support for regular gasoline (below 91 octane) will be 0%, compared to the 10.83% it had the previous week. As a result, motorists will pay a fee of 5.91 pesos per liter of ‘green’ gasoline.
Meanwhile, premium gasoline will also have a 0% tax incentive, as indicated by the information from the department, the same as the previous week. Consequently, motorists will pay 4.99 pesos per liter for this type of gasoline.
As for diesel, the tax support will be much lower.
For this week, it will decrease to 25.25%, down from the 41.32% of the previous week. The agreement, published this Friday in the DOF, is effective from November 11 to November 17, 2023.
Tax Incentive for Regular and Premium Gasoline in Mexico: ???
The type of fuel your car needs depends on the type of vehicle you have.
Thus, the 0% tax incentive for regular and premium gasoline in Mexico could affect vehicles that require low lead content. There are two types of gasoline:
- Regular gasoline: Lead-free and formulated for cars with catalytic converters and internal combustion engines. Its octane rating is 87.
- Premium gasoline: Low sulfur content, higher octane, and formulated for cars with catalytic converters and high-compression engines. Its octane rating is 92.
The octane rating to be used should be the one required by the manufacturer of your vehicle; this information should be in the user manual. Most cars are designed to use 87-octane gasoline; however, some are designed to use a higher octane rating.
Read: Mexico’s October inflation slowed for the ninth month in a row
