Mexico and Guatemala boost fuel subsidies amid soaring gasoline and diesel prices

The Mexican government announced larger weekly subsidies for all gasoline grades and diesel. Through a decree in the Official Gazette, the Treasury will cover 71.58 % of the special tax on diesel and 38.18 % on regular gasoline, reducing the tax per litre to 2.09 pesos for diesel and 4.14 pesos for gasoline. The measures, the highest since the subsidies were re‑activated in March, aim to offset price pressures caused by higher international oil prices linked to the Middle‑East conflict, and they complement a voluntary pact that keeps diesel under 27 pesos per litre and gasoline under 24 pesos.

In Guatemala, President Bernardo Arévalo presented a temporary subsidy plan of Q12 per gallon of diesel and Q3 per gallon of regular gasoline, to remain in force until the end of the year pending congressional approval. The executive branch has already reallocated funds to finance the aid and says implementation would be immediate once the law passes. Public reaction is mixed, with some citizens doubting the speed of delivery and the fiscal sustainability of the program, while others welcome any relief from the sharp rise in fuel costs that is affecting food and transport prices.