Fuel Prices on the Rise
As recalled, in October 2022, the Government decided to eliminate fuel subsidies, starting with gasoline, gradually increasing prices until they matched international prices. This decision, led by then-Minister of Finance, José Antonio Ocampo, was sensible and brave, given the enormous accumulated deficit that the Fuel Price Stabilization Fund had been carrying.
TL;DR
- International crude oil and derivative prices have surged due to a conflict in the Middle East.
- Colombia imported 40% of its gasoline and 15% of its diesel, making it sensitive to global price hikes.
- A 2022 decision to end fuel subsidies is now under pressure as prices rise.
- The Fuel Price Stabilization Fund's deficit, previously reduced, is projected to increase significantly.
- The government is evaluating whether to maintain, suspend, or reverse recent gasoline price cuts.
- Rising fuel costs contribute to inflation, increase transportation costs, and can slow economic growth.