The Mexican government has raised Special Tax on Production and Services (IEPS) incentives on gasoline and diesel for July 25-31, 2026, to help cushion consumers from higher international oil prices.
Mexico’s Ministry of Finance and Public Credit (SHCP) has increased Special Tax on Production and Services (IEPS) incentives for gasoline and diesel for the period from 25 to 31 July 2026, in an effort to limit the impact of rising international oil prices on fuel costs.
Under the revised rates, diesel will receive the largest incentive, with the government covering 71.58% of the Special Tax on Production and Services (IEPS), reducing the tax payable to MXN 2.09 per litre. The incentive for regular gasoline (Magna) has been set at 38.18%, lowering the tax to MXN 4.14 per litre, while the incentive for Premium gasoline has increased to 30.06%, reducing the tax to about MXN 3.95 per litre.
The SHCP said the temporary increase in tax support follows higher international oil prices amid geopolitical tensions in the Middle East and is intended to reduce the tax burden on fuel purchases.
The government also said that 84% of fuel stations are participating in a voluntary price agreement to keep diesel prices below MXN 27 per litre and regular gasoline prices below 24 pesos per litre during the incentive period.
