Mexico increases fuel and diesel subsidy to curb rise due to Middle East
WHAT HAPPENED
From September 5 to 11, Mexico increased the tax discount per liter of gasoline and diesel. The average price remained at $23.69 for Magna, $28.58 for Premium, and $27.02 for diesel.
WHY IT MATTERS
Oil prices rose due to the crisis in the Middle East. Without this discount, gasoline would have increased. Diesel is especially important because it is used by trucks, public transport, and agriculture: a rise increases the cost of moving goods and food.
AND FOR YOUR PORTFOLIO
For households, the relief is noticeable at the gas station this week. For businesses and long-term portfolios, it temporarily reduces pressure on transportation, food, and consumption, although the Government collects less and prices may come under pressure again if oil remains expensive.
💬 TELL IT LIKE THIS
“The Government is absorbing part of the tax so that high oil prices do not fully reach the gas station, especially affecting transportation and food.”