MEXICO CITY, (Reuters) – Mexico announced yesterday a plan to simplify its fiscal regime for state producer Pemex, in an effort to boost the oil producer whose heavy debts have weighed on state coffers.
Mexican President Claudia Sheinbaum said in the regular morning press conference that her administration would consolidate the number of taxes Pemex pays the government, merging three existing duties into one.
The president said the move was aimed at “transparency” and giving the oil company, formally known as Petroleos Mexicanos PEMX.UL, more room for investment.
The new duty will be set at a general rate of 30%, and a lower 11.63% for non-associated gas, gas that does not come to the surface as a byproduct of oil production but is considered the principal resource, in 2025.
“We have to fix Pemex,” Sheinbaum said, adding that the program would also seek to cut inefficiencies, diversify its energy sources, and pay down debt while protecting its output levels.
During the presentation, state officials laid out plans for Pemex to increase estimated oil reserves, hit a target 5 billion cubic feet of natural gas per day during Sheinbaum’s six-year term, maintain its hydrocarbon production at 1.8 million barrels per day, and increase storage capacity for refined products like gasoline and diesel.
New Pemex chief Victor Rodriguez said the company would push an austerity drive that seeks to slash some 50 billion pesos ($2.44 billion) in costs.
He added Pemex would continue to work to pay down its debts and that he did not expect the company would have to resort to international debt markets to shore up its financing.
Despite government efforts to reduce debt, Pemex carries financial debt of nearly $100 billion and service provider debt of about $20 billion.
Credit agencies have warned that government budget allocations for Pemex are an important factor they look at when assessing the country’s credit rating.
Sheinbaum also responded to questions on a Bloomberg report on Tuesday that said the government would allocate $6 billion to Pemex in its 2025 draft budget, saying the figure was not correct and was still being evaluated.
The president, who said the cuts would target in part administrative inefficiencies such as the large number of subsidiaries, did not rule out refinancing Pemex debt in the future.
As with her mentor and former president, Andres Manuel Lopez Obrador, Sheinbaum has underlined the importance of state energy companies in shoring up the country’s energy sovereignty. She has also spoken of the need to transition to more renewable sources.
