AMLO denies that gasoline subsidy affects public finances

The President of Mexico, Andrés Manuel López Obrador, denied that the 100% subsidy applied to the special tax on gasoline affects public finances, which, he assured, benefit from the surpluses due to the high price of oil.

López Obrador made this statement after the medium Bloomberg pointed out that the Government of Mexico pays more than double in fuel subsidies, than what it obtains from extraordinary profits for producing oil, when calculating a fiscal cost of about 1.35 billion dollars for the Treasury in May alone.

Instead of considering that we lose with this subsidy, we consider that we win, because the popular economy is strengthened, which is what matters to us.. And on the other hand, we still win because we have a surplus, “he argued in the” morning “of him.

In addition, he defended the 100% subsidy that has been applied since March to the special tax on production and services (IEPS) that gasoline and fuel must pay in Mexico.

Likewise, he highlighted that the Mexican mixture of crude oil is around 113 dollars per barrel, which contrasts with the official Treasury budget for 2022, which contemplates a price of 55.1 dollars per barrel and oil revenues of more than one thousand 87 billion pesos.

“It’s a matter of common sense, of practical judgment, a barrel of oil is being sold at 113 dollars, the surpluses that are being obtained from high oil prices help offset the IEPS subsidy, it’s a simple account,” Indian.

Bloomberg accused of cheating in “Who’s Who Lies of the Week”

Moments before, the Government of Mexico accused Bloomberg of “misleading about the cost and subsidy of gasoline” in the section “Who is who in the lies of the week”, in which he denounces the media for spreading “false news” .

Ana Elizabeth García Vilchis, in charge of the section and network director of the Office of the President’s Spokesperson, He crossed out the information as “false” because “it overestimates the price of gasoline, and underestimates the income from the export of crude oil”according to the Ministry of Finance.

“If we add the oil revenues of the federal government, calculated by the Treasury between January and April of this year, they would add up to eight thousand 900 million dollars, while the gasoline subsidies in those four months barely add up to four thousand 443 million dollars. “said the official.

Citing a Treasury document, García Vilchis said that “due to high oil prices in the world due to the war in Ukraine, Petróleos Mexicanos (Pemex) is receiving higher revenues from the export of crude oil and other oil derivatives.”

It will also collect more value added tax (VAT) for higher fuel consumption, he promised.

López Obrador defended the subsidy by indicating that it allows inflation to be controlled, which fell in the first half of May to a general rate of 7.58 percent.



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