CANCUN, Mexico - Mexico should see oil revenues bounce back in the second quarter, after a dip in the first quarter, citing revenues above forecast in April, Deputy Finance Minister Alejandro Werner said on Monday.
He also said the government will not cut fuel subsidies.
Factors that hurt government coffers in the first quarter -- such as lower crude export volumes and a jump in the price and volume of fuel imports -- were not expected to be repeated in the second quarter, and oil revenues would probably be higher than forecast, Werner said.
Mexico, which is a key supplier of oil to the United States but a net importer of gasoline, could see waning oil production recover in a few years, and rise substantially thereafter, if Congress approves a proposed oil sector reform, he said.
"It's likely that the phenomenon we saw in the first quarter will reverse," Werner told reporters ahead of a regional finance ministers meeting in the Mexican resort of Cancun.
He said there was no plan to reduce subsidies on gasoline, diesel and domestic gas that are likely to cost the government close to $20 billion this year.
"This idea that the Finance Ministry is going to be forced to adjust (the subsidies) is not backed up by any macroeconomic variable," he said.
Werner said oil revenues in April were around 5 billion pesos ($484 million) above forecast, a trend that is expected to continue during the second quarter.
Record-high oil prices have been helping Mexico weather an economic slowdown in the United States, its main trading partner, but a drop in oil exports and a jump in the cost of imported gasoline hurt state coffers in the first three months of the year.
He also said the government will not cut fuel subsidies.
Factors that hurt government coffers in the first quarter -- such as lower crude export volumes and a jump in the price and volume of fuel imports -- were not expected to be repeated in the second quarter, and oil revenues would probably be higher than forecast, Werner said.
Mexico, which is a key supplier of oil to the United States but a net importer of gasoline, could see waning oil production recover in a few years, and rise substantially thereafter, if Congress approves a proposed oil sector reform, he said.
"It's likely that the phenomenon we saw in the first quarter will reverse," Werner told reporters ahead of a regional finance ministers meeting in the Mexican resort of Cancun.
He said there was no plan to reduce subsidies on gasoline, diesel and domestic gas that are likely to cost the government close to $20 billion this year.
"This idea that the Finance Ministry is going to be forced to adjust (the subsidies) is not backed up by any macroeconomic variable," he said.
Werner said oil revenues in April were around 5 billion pesos ($484 million) above forecast, a trend that is expected to continue during the second quarter.
Record-high oil prices have been helping Mexico weather an economic slowdown in the United States, its main trading partner, but a drop in oil exports and a jump in the cost of imported gasoline hurt state coffers in the first three months of the year.
