Mexico will introduce fuel and sales tax breaks along the country’s southern border and extend a program of similar benefits through the end of 2024 along the northern border, officials said on Friday, in a bid to boost local economies.
In other news,
Mexican oil giant Pemex is about to start the process of contracting an oil hedge for 2021, a senior source at the company told Reuters, after the previous two hedges delivered bumper payouts for the highly-indebted company.
Pemex’s hedge is separate and much smaller than the one contracted annually by Mexico’s finance ministry. The government every year buys about $1 billion in financial contracts, the world’s largest oil hedge program, to protect revenues.
Pemex has received about $377.3 million from its 2020 hedge amid falling oil prices and another $369 million from the 2019 hedge, said the senior Pemex official, who was not authorized to talk about the issue and wished not to be named.
“Shortly, work will begin on the 2021 coverage,” said the official, after mentioning that the program had been approved already by the company’s board of directors.