The negative effects on the Colombian economy of having oil prices above 100 dollars
The price of oil returned to figures not seen since March 2022, exceeding US$100 per barrel. Photo: iStock
TL;DR
- Global conflict in the Middle East has caused oil prices to exceed US$100 per barrel, reaching levels not seen in years.
- Higher oil prices positively impact Colombia's national revenue and Ecopetrol's finances, exceeding government projections.
- The increased price of oil and gas, coupled with reduced internal fuel prices, has led to a growing deficit in the Fuel Price Stabilization Fund (Fepc).
- The Fepc's deficit is driven by the widening gap between international fuel prices and subsidized domestic prices, particularly for diesel.
- Projections suggest gasoline prices could rise significantly if crude oil reaches US$150 per barrel.
- Colombia's reliance on imported natural gas also faces increased costs, with reference prices on the Henry Hub rising.