Colombia's Ministry of Mines and Energy issued a resolution to cut gasoline prices by $500 per gallon starting February 1, 2026, while diesel remains stable. The measure aims to address the deficit in the Fuel Price Stabilization Fund (Fepc). Minister Edwin Palma countered criticisms on the inherited debt, stating that the $70 billion figure represents cumulative payments over six years.
On January 31, 2026, Colombia's Ministry of Mines and Energy formalized a $500 per gallon reduction in gasoline prices, effective from February 1. The cut applies uniformly in cities including Bogotá, Medellín, Cali, Barranquilla, Cartagena, Bucaramanga, Pereira, Manizales, Villavicencio, Ibagué, Cúcuta, and Pasto. Diesel prices remain unchanged to avoid impacts on transportation and logistics.
The decision addresses the deficit in the Fuel Price Stabilization Fund (Fepc), inherited from the previous administration and worsened by subsidies. Minister Edwin Palma explained that the fund accounts for total differences with import parity, including logistical costs, not isolated subsidies. At the end of Iván Duque's government, the deficit exceeded $30 billion, with disparities of $7,062 per gallon of gasoline and $11,064 per gallon of ACPM. In the last two quarters of 2022, $19.9 billion accumulated, equivalent to 67% of the previous four years.
Palma clarified that the $70 billion figure is the sum of Fepc payments from 2018 to 2024, resources diverted from social investment. Under Gustavo Petro's government, balances were $20.5 billion in 2023 and $7.7 billion in 2024. However, analyst Felipe Campos argued that Duque left a $36 billion deficit, of which $16 billion was paid, leaving $20 billion. Campos attributed an additional $31 billion deficit since 2023 ($19 billion in 2023, $8 billion in 2024, and $4 billion in 2025) to the current government, criticizing the diesel subsidy, which would have limited the 2023 deficit to $10 billion if avoided.
Palma defended gradual gasoline price adjustments, exclusion of large consumers from the Fepc, peso revaluation, and falling international prices. These measures reversed the fund's balance in the second half of 2025, achieving net positive payments for the first time in over five years. Without them, the account would be $20 billion larger, reducing public investment. The ministry will monitor regional implementation to ensure fiscal sustainability and continuous supply.
