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Mexico Ends Fuel Subsidy Jan. 1–9 and Updates 2026 IEPS; Sugary Drink, Tobacco and Betting Levies Rise

Drivers pay the full federal fuel excise in early January, reflecting a broader IEPS reset.

Overview

  • The Finance Ministry published Acuerdo 184/2025 in the federal gazette setting a 0% stimulus for gasoline and diesel from January 1 to 9, 2026, meaning no subsidy to the fuel excise.
  • Per‑liter IEPS quotas effective January 1 are 6.7001 pesos for regular gasoline, 5.6579 for premium and non‑fossil fuels, and 7.3634 for diesel.
  • Congress’s 2026 package raises IEPS on sweetened beverages to 3.08 pesos per liter and introduces a 1.50‑peso levy on drinks with artificial sweeteners, increases tobacco rates to 200% ad valorem plus 0.85 pesos per piece, and lifts betting taxes to 50%, including 50% for foreign digital operators.
  • The Presidency decreed a 100% subsidy for the newly approved 8% IEPS on violent video games for 2026, so that charge will not be collected from users next year.
  • Hacienda projects 2026 IEPS revenue of 473,279 million pesos from fuels and 142,411 million from beverages, tobacco and betting, and consumers could see higher pump prices as the full fuel levy applies.