Mexico ranks as the third most expensive country in Latin America for gasoline

Mexico ranks as the third country with the most expensive gasoline in Latin America. This issue directly affects the economy of the citizens and the productive sector.

In recent months, fuel prices have recorded significant increases. The situation generates concern among consumers and experts.

The impact of the IEPS increase

Since January 1, 2025, the Special Tax on Production and Services (IEPS) rose by 4.5%. This adjustment caused an immediate increase in the cost of gasoline and other products.

The IEPS rates for 2025 were set as follows:

• Magna: 6.45 pesos per liter.
• Premium: 5.45 pesos per liter.
• Diesel: 7.09 pesos per liter.

Factors driving up gasoline prices

The increase in the IEPS is not the only cause of the rise in fuel prices. There are other key factors affecting its cost:

• International oil prices: Mexico depends on the global crude oil quotation.
• Refining and distribution costs: The national infrastructure limits local production.
• Exchange rate: The depreciation of the peso against the dollar makes gasoline imports more expensive.
• Elimination of subsidies: In 2017, the government eliminated fuel subsidies, raising its price.

These combined elements directly affect the cost paid by consumers.

The blow to Mexicans' wallets

The increase in gasoline prices impacts the economy of families. It also generates increases in transportation, goods, and services.

In June 2024, Magna gasoline reached 23.73 pesos per liter on average. This was a historic high recorded in Mexico.

At the beginning of 2025, the government announced temporary subsidies for Magna and diesel. However, Premium gasoline did not receive support.

Comparison with other countries in the region

Mexico is the third country with the most expensive gasoline in Latin America. Prices in the region are as follows:

• Chile: Most expensive fuel, with prices of 1.50 USD per liter.
• Uruguay: In second place, with costs of 1.45 USD per liter.
• Mexico: With prices ranging between 1.30 and 1.42 USD per liter.
• Venezuela: Has the cheapest gasoline due to government subsidies.

Outlook and government measures

Authorities seek to mitigate the impact of rising prices. However, the dependence on imports and market fluctuations continue to affect fuel costs.

Experts anticipate that gasoline prices will continue to vary in the coming months. Therefore, consumers must stay informed about the factors influencing its cost.