Pemex Cuts Government Support Amid Record Oil Prices

Mexico's government has reduced financial support for state-owned energy company Pemex by as much as 70% in next year's budget, citing expectations of a cash surplus due to higher oil prices.

The move is based on the assumption that Pemex will benefit from the current oil price rally spurred by the US and Israeli war against Iran. Bloomberg reports that the government expects the company to post a rare cash surplus of 95 billion pesos ($5.63 billion) this year, leading to a stipulation of just 81 billion pesos in financial assistance for next year.

Pemex is currently struggling with debt, having accumulated $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 this year, according to a news release from the time.