Overview

• The president announced that the voluntary pact to keep Magna gasoline at 24 pesos per liter will be renewed for August, extending the agreement signed in February.
• A decree in the Diario Oficial de la Federación confirms that motorists will pay 100 percent of the IEPS levy on Magna, Premium and diesel for an 18th consecutive week.
• Data from PETROIntelligence show national average pump prices at 23.48 pesos for Magna, 25.75 pesos for Premium and 26.33 pesos for diesel as of August 7.
• U.S. Energy Information Administration figures indicate Texas gasoline prices fell 8.6 percent in peso terms from February to July, versus a 2.6 percent drop for Mexico’s Magna, implying a theoretical cap of 22.13 pesos.
• IEPS collections have swung from a 200 billion peso annual subsidy in 2012 to nearly 400 billion in the past year, exceeding forecasts and prompting warnings that high fuel taxes could spur smuggling.