The president of Colombia, Gustavo Petroannounced this Sunday a rise in fuel prices due to the deficit of the Fuel Price Stabilization Fund.
“The fuel price stabilization deficit due to non-payment by the previous government is 10,000 million pesos per quarter. That is, almost 40,000 million annually. Almost half of the national budget deficit is produced by not raising the price of gasoline,” explained the Colombian president through his Twitter account.
Petro It also raised a national debate on hydrocarbon subsidies. “Is it worth $40 billion to subsidize gasoline when the infant mortality rate from malnutrition doubles?” he said.
Congress can advance the debate on the structure of fuel prices, and their indexation with international oil prices, which includes the purchase of oil that Ecopetrol makes within the country at international prices.
– Gustavo Petro (@petrogustavo) September 11, 2022
“Hunger and poverty are consequences of not raising gasoline prices and increasing the fund’s deficit,” Petro said.
The Colombian president proposed that Congress address this debate including the purchase of oil that Ecopetrol makes for the interior of the country at an international price.
Colombians pay for some of the cheapest gasoline in the Americas thanks to a fuel price stabilization fund, which covers the difference between oil prices on the international market and the internal value set by the government.
Without that subsidy, gasoline prices would hover around $4 a gallon, instead of the $2.5 they currently pay.
During the past administration of Ivan Duke the rate to the public was reduced due to the covid-19 pandemicbut at a high cost to the state coffers.
“We tell gasoline consumers that we will return to the path of price growth, and that the objective will be nothing more than to reduce the irresponsibly accumulated deficit. We will not touch derivatives” of diesel, Petro said.
However, he did not anticipate how much the increase per gallon will be or when it will take effect.
Given the imminent adjustment of the gasoline pricethe government could face the first protests in a context of high inflation (10.8% in the last year).
The value of fuel directly affects the price of food, since almost all cargo is transported by road.
In countries like Chile ($5.4), Peru ($6.3) and the United States ($4.8), fuel is much more expensive, according to the Colombian Ministry of Finance.
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