Mines and Energy Minister Edwin Palma signed a resolution for a $500 per gallon gasoline price reduction effective March 1, 2026—the second consecutive cut following February's drop—bringing the average price in Colombia's 13 main cities to $15,057. The move, confirmed days earlier by Finance Minister Germán Ávila, aims to ease economic pressures amid Fuel Prices Stabilization Fund (Fepc) improvements.
Mines and Energy Minister Edwin Palma signed the resolution on February 28 implementing a nationwide $500 cut in regular gasoline prices starting March 1, 2026. This follows a similar $500 reduction on February 1, for a cumulative $1,000 decrease over the past month. The adjustment stems from Fepc sanitation and pricing system ordering, shielding against international oil volatility. Diesel prices remain unchanged to support transportation and industry.
Palma stated: “Today we can say with pride that this Government's effort translates into concrete relief for Colombians: between February and March we achieved a cumulative rebate of $1,000 per gallon.”
Finance Minister Germán Ávila had confirmed the cut on February 26, citing Petro government analysis of fuel markets and public finances. In an RCN La FM interview, he noted: “We are in the final conclusions of that analysis and there will be very good news for Colombians regarding gasoline price reductions,” hinting at potential further cuts exceeding $1,600.
Post-adjustment prices in the 13 main cities average $15,057. Highest: Villavicencio ($15,591), Cali ($15,502), Bogotá ($15,491), Manizales ($15,466), Pereira ($15,439). Lowest: Pasto ($13,247), Cúcuta ($13,400), with Cartagena at $15,083 and others above $15,000.
Experts highlight room for more reductions. Julio César Vera of Xua Energy noted a $3,006 gap versus international reference prices despite Middle East tensions. Corficolombiana estimated up to $2,400 if diesel adjusts, or $800 without.
UPME data shows price breakdown: 68% producer income, 18% taxes (10% surcharge), 11% distributor margins, 3% transportation.
