IEPS on fuels to be eliminated & adjust electricity rates

Federal Representative Jesus Nader Nasrallah announced two energy-related initiatives aimed at reducing the economic impact on households, proposing the elimination of the Special Tax on Production and Services (IEPS) on fuels and a restructuring of residential electricity rates.

The legislator indicated that the measure could be implemented immediately if there is political will, given that the legislative conditions for its approval are in place.

It is questionable whether Mexico, despite being an oil producer, can afford to maintain a tax that increases the cost of fuel for end consumers.

In a second initiative, Nader proposed modifying the country’s domestic electricity rate structure to adjust rates to the climatic conditions of each region; he noted that high temperatures force families to increase their use of fans and air conditioning systems, which raises energy consumption and the amount of their bills.