Mexico will use the extra revenue it collects from higher oil prices to subsidize domestic gasoline and diesel prices, Deputy Finance Minister Gabriel Yorio told Reuters on Friday.
While production has slid significantly in recent years, Mexico remains a major oil producer and exporter.
Mexican motorists have largely been shielded from big spikes in fuel prices in recent weeks due to the subsidy policy championed by the government of President Andres Manuel Lopez Obrador, who has long promised to insulate consumers from sharp price hikes at the pump. Mexico's government is just the latest globally to try to cushion the impact of soaring fuel prices following Russia's invasion of Ukraine and one of the few that has the luxury of additional oil income to help finance those subsidies.
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