Mexico Slashes Pemex Support as Oil Prices Surge
Mexico's government is significantly reducing financial assistance for state energy major Pemex due to rising oil prices. The decision comes as the company struggles to pay down debt and boost production.
According to a Bloomberg report, the Mexican government expects Pemex to post a rare cash surplus of 95 billion pesos ($5.63 billion) this year, thanks to the oil price rally. As a result, the government has stipulated financial help of just 81 billion pesos for the company in next year's budget, equivalent to $4.8 billion - a 70% decrease from this year.
Pemex is the most indebted company in the world, with debt of around $105 billion as of mid-2025. However, the company has managed to reduce its debt pile to $79 billion by the end of the first quarter of this year.