Reduced Oil Revenues and Financial Struggles: How the New Mexican Government is Tackling Pemex’s Debt Crisis

In the first four months of this year, oil revenues received by the federal government have decreased by almost a third, according to the Ministry of Finance. With the largest public deficit in three decades and a change of administration, oil revenues have been reduced by 32.9 percent compared to the previous year. Transfers from the Mexican Petroleum Fund (FMP) during this period were only 59,449.4 million pesos, a decrease of 32.9 percent compared to last year.

The Treasury has been reducing Pemex’s tax burden and offering tax amnesties to help the company manage its debts. Rogelio Ramírez de la O, who is currently heading up the Treasury department, has been invited to join Claudia Sheinbaum’s team as a virtual president-elect to work on strengthening collaboration with Pemex. The ultimate goal is to restructure Pemex’s finances and ensure its long-term sustainability. Ramírez de la O has emphasized that there is a need for a restructuring of Pemex’s finances due to its large debt and complex financial situation.