Pemex’s Failing Finances: Mexico’s Oil Revenue Decreases by a Third in 2020

The Mexican Petroleum Fund has seen a decrease of 32.9 percent in contributions so far this year, according to the Ministry of Finance. With the country facing its largest public deficit in three decades and a change in administration, oil revenues received by the federal government have been reduced by almost a third. In the first four months of the year, oil revenues totaled 60,720.8 million pesos, mainly from income taxes paid by contractors and assignees, as well as transfers from the FMP.

Transfers from the FMP during the same period were 59,449.4 million pesos, a 32.9 percent decrease compared to the previous year. The Treasury has been working on reducing Pemex’s tax burden and offering tax amnesties to help the company manage its debts. Rogelio Ramírez de la O, the current head of the Treasury, has been invited to join the team of the virtual president-elect, Claudia Sheinbaum, to work on strengthening collaboration with Pemex.

The Treasury is also working on a plan to transfer a significant portion of Pemex’s debt to the federal government’s balance sheet. Ramírez de la O has emphasized the need for a restructuring of Pemex’s finances, acknowledging the company’s large debt and complex financial situation. The ultimate goal is to stabilize Pemex and ensure its long-term sustainability.