Mexico's government plans to slash financial support for state-owned oil company Petroleos Mexicanos' debt payments by nearly 70%, reducing it to 81.1 billion pesos ($4.8 billion) in 2027 from 263.5 billion pesos budgeted this year. President Claudia Sheinbaum's 2027 budget plan, submitted to Congress, expects Pemex to achieve a financial surplus of 95.1 billion pesos ($5.6 billion). The move signals a significant shift in Mexico's fiscal approach to supporting its energy sector.

The dramatic reduction in Pemex aid reflects the government's push toward fiscal discipline and the state oil company's expected turnaround. Pemex, long burdened by debt, is projected to swing to a substantial surplus under the new budget framework.

The budget proposal was submitted to Congress on Tuesday evening and will now undergo legislative review. Analysts are watching closely to see how lawmakers respond to the significant cut in financial support for the historically struggling oil giant.

The plan marks a pivotal moment for Mexico's energy policy and fiscal management. Reducing Pemex's reliance on government transfers could reshape the company's operational priorities and Mexico's broader economic trajectory.

The 2027 budget plan underscores President Sheinbaum's commitment to fiscal reform while balancing the needs of Mexico's critical energy sector.