Colombia's Ministry of Mines and Energy issued Decree 1428 of 2025 to exclude private, diplomatic, and official vehicles from the diesel subsidy under the Fuel Price Stabilization Fund (FEPC). The move aims to correct distortions in subsidy use and safeguard public finances, with gradual implementation in ten departments. Public transport for cargo and passengers remains exempt to prevent effects on food prices and transportation costs.
The Ministry of Mines and Energy announced Decree 1428 of 2025, which disconnects private, diplomatic, and official vehicles from the diesel subsidy provided by the FEPC. The ministry states this corrects historical distortions in the subsidy, which for years benefited consumptions without essential social function, creating high fiscal costs for the state.
"For years, the Fuel Price Stabilization Fund (FEPC) ended up subsidizing diesel consumption by vehicles that do not fulfill an essential social function, generating a high fiscal cost for the State," the ministry explained.
Implementation will be gradual in the departments of Antioquia, Atlántico, Bolívar, Cundinamarca, Córdoba, Magdalena, Risaralda, Santander, Tolima, and Valle del Cauca, to assess viability before potential nationwide extension. The producer income for diesel from these vehicles will adjust to levels near international parity, without exceeding import prices.
Minister Edwin Palma stressed protection for public transport:
"The fuel subsidy must be where it fulfills a social function. Protecting public transport means protecting jobs, production, and the cost of living for millions of families".
Experts like Óscar Ferney Rincón, director of Acipet, highlight logistical and technological challenges, suggesting options such as license plate recognition or dedicated lanes at service stations. David Jiménez, president of Comce, calls for clear regulations and national application to avoid confusion and regional price imbalances.
Julio César Vera from Xua Energy estimates around 400,000 vehicles will be affected, generating monthly savings of up to 40 billion pesos. While regulations are developed over six months, prices will follow current general norms.
