Pemex granted one month tax payment deferral

Mexico granted Petroleos Mexicanos (Pemex) a deferral of its monthly tax payment, deferring a May payment to July 31.

Pemex, struggling with about $100 billion in debt, will postpone its so-called Direct User Charges (DUC) levies, according to a decree published Tuesday. This tax deferral follows previous aid from President Andres Manuel Lopez Obrador, who has prioritised Pemex’s revival during his term ending this year.

The government had earlier waived DUC taxes from October to January and reduced Pemex’s profit-sharing duties to 30 per cent for 2024. This time, the government chose deferral over the cancellation, signalling its commitment to prevent Pemex’s default.

The May payment amount wasn’t specified, but recent monthly payments averaged 15.5 billion pesos ($851 million). President-elect Claudia Sheinbaum, assuming office on Oct. 1, has pledged to continue Lopez Obrador’s support for Pemex.

Attribution: Bloomberg.