Mexico's Treasury Secretary minimises concerns over potential fuel price hikes due to the US and Israel's conflict with Iran, citing a robust fiscal mechanism to mitigate effects.
Édgar Amador, Secretary of the Treasury and Public Credit in Mexico, addressed concerns regarding the impact of ongoing conflicts in the Middle East, specifically the tensions between the United States, Israel, and Iran, stating that any potential effects on fuel prices would be short-lived. He urged the public to remain calm amidst rising oil barrel prices, emphasizing that the government has measures in place to handle fluctuations in fuel pricing.
Amador highlighted the existing fiscal mechanism known as the Special Tax on Production and Services (IEPS), which has been in effect since 2019. This mechanism is designed to adjust automatically based on market variables, ensuring transparency and predictability in how it operates. He reassured both the media and the public that this system would function as intended to mitigate immediate impacts on consumers, particularly regarding gasoline and diesel prices.
In light of the escalating conflict in the Middle East, the Mexican government's proactive stance underscores its commitment to maintaining stability in local fuel prices. By doing so, they aim to alleviate public anxiety over potential cost surges that could arise from global geopolitical tensions, thereby fostering confidence in economic management and the stability of essential commodities.
