Mexico’s president says new agreement to help Pemex lower tax burden

Tanker trucks are pictured at Mexican state oil firm Pemex's Cadereyta refinery
FILE PHOTO: Tanker trucks are pictured at Mexican state oil firm Pemex's Cadereyta refinery in Cadereyta, on the outskirts of Monterrey, Mexico, December 10, 2020. REUTERS/Daniel Becerril

February 18, 2021

MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador said on Thursday that a new agreement will come into force to once again reduce the tax burden on state oil company Pemex.

The loss-making oil giant has received vast financial support from Lopez Obrador’s government, which has made it a priority to clean up Pemex’s finances and turn around the company’s fortunes.

“The (state power utility) CFE and Pemex will continue to be supported with public financing, with the budget, for the two companies. In the case of Pemex, another agreement will come into force, a decree to reduce its tax payments to the finance ministry,” Lopez Obrador said in his daily news conference.

(Reporting by Ana Isabel Martínez; Writing by Drazen Jorgic; editing by Cassandra Garrison)