Colombia's Minister of Mines and Energy, Edwin Palma, confirmed the government's efforts to stabilize the Fuel Prices Stabilization Fund (FEPC) and proceed with a gradual adjustment to the gasoline price. This follows President Gustavo Petro's announcement of a fuel price reduction. The minister stated that the exact amount of the cut will be announced on February 1.
President Gustavo Petro recently announced a reduction in the gasoline price, prompting government actions to address longstanding imbalances in the energy sector. In a statement, Minister Edwin Palma highlighted that for years, Colombia maintained 'falsely cheap gasoline,' funded by the national budget intended for drinking water, education, and basic sanitation, thereby harming the most vulnerable populations.
Palma criticized the 'historical deficit of the FEPC' resulting from subsidies to the wealthiest, fossil fuels, and vehicle owners who did not need them. 'President Gustavo Petro took the decision that others avoided to clean up the FEPC, order public finances, and stop subsidizing the privileged,' the minister stated.
Through responsible payments and structural adjustments, the FEPC is moving toward financial equilibrium, avoiding new hidden debt. In parallel, the government is gradually adjusting the internal price of regular motor gasoline to its international reference, in a favorable context of low oil prices and a strengthening Colombian peso.
Palma reported that the reduction is under study, with figures being reconciled with the Ministry of Finance to determine the percentage. 'If we also apply a new ethanol blending methodology, we believe it could have a downward impact, but I don't want to anticipate without concrete data,' he indicated. The exact value of the reduction will be announced on February 1.
