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AMLO Pumps Up Subsidies to Keep Mexican Fuel Prices Stable

Andres Manuel Lopez Obrador 

Andres Manuel Lopez Obrador 

Photographer: Camilo Freedman/Bloomberg
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In the midst of the highest inflation in Mexico in 20 years, the government is maintaining President Andrés Manuel López Obrador’s commitment to keeping gasoline prices stable, even if that means losing revenue.

The regular (magna) and high-octane (premium) gasoline on sale in the country will continue to be exempt from the so-called special tax on production and services (IEPS), but will also be given a complementary fiscal subsidy, activated by the government in the face of high oil prices as a result of Russia’s invasion of Ukraine.