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Mexico Finance Chief Says Subsidies Work Even With $155 Oil

  • Government prepared for crude prices between $95 and $155
  • Mexico can keep balanced budget despite price fluctuations
Rogelio Ramirez De la O
Rogelio Ramirez De la O

Photographer: Luis Barron/Eyepix Group/Barcroft Media/Getty Images

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Mexico will maintain a balanced budget while subsidizing gasoline at the pump even if the price of crude oil spikes to $155 per barrel, according to the country’s top finance official.

Finance Minister Rogelio Ramirez de la O told Bloomberg News that the government can keep providing tax relief on petroleum even if the cost of gasoline and diesel rises far higher than its current level. That would allow the Mexican government to maintain low prices and protect consumers despite energy costs surging in the wake of Russia’s invasion of Ukraine.