Mexico’s Fuel Prices Rank Highest Among Top 10 Global Consumers

Mexico has the highest gasoline prices among the world’s Top 10 consumers, according to energy consultancy Caravia y Asociados. In July, the average price for regular gasoline (Magna) in Mexico was MX$23.31/L, notably higher than countries like Brazil, India, and the United States, where prices averaged MX$15.39/L.

Ramsés Pech, Director General of the energy consultancy, shared this data on X, emphasizing that this was a comparison made with the main consumers of gasoline around the world.

The main driver behind Mexico’s elevated fuel prices is its high tax burden, Pech told Reforma. Approximately 64% of the gasoline price consists of taxes, mainly the Special Tax on Production and Services (IEPS) and Value Added Tax (IVA). This contrasts sharply with Brazil, where taxes make up just 35.2% of the price, and the global average of 45%.

Pech highlighted that the government’s decision to cap gasoline prices at MX$24/L since March has hurt PEMEX financially. If prices were fully liberated, the cost would range between MX$25 and MX$25.50/L. This price cap causes the NOC to lose about MX$1 to MX$1.50/L. Moreover, the government has not applied fiscal stimuli for over 30 weeks, effectively capturing the revenues from IEPS and IVA taxes during this period.