Following Decree 1428 of 2025's announcement to end diesel subsidies for private, diplomatic, and official vehicles—raising prices by ~$3,000 while sparing public transport—service stations in affected regions raise operational issues amid the Colombian government's FEPC reforms.
As part of President Gustavo Petro's administration's ongoing dismantling of the Fuel Price Stabilization Fund (FEPC)—which previously raised gasoline prices in 2023—the Ministry of Mines and Energy has targeted diesel (ACPM) subsidies for non-essential uses via Decree 1428 of 2025.
The decree aligns private, diplomatic, and official vehicle diesel costs closer to market rates, increasing them by about $3,000 per unit, to address fiscal distortions without impacting public cargo/passenger transport, food prices, or household costs.
Rollout is phased over six months, starting in major areas: Antioquia, Atlántico, Bogotá, Bolívar, Córdoba, Cundinamarca, Magdalena, Risaralda, Santander, Tolima, and Valle del Cauca (initially excluding Huila), allowing impact monitoring before wider application.
Minister Edwin Palma reiterated the social focus: subsidies should protect public transport, jobs, production, and living costs.
While experts have noted logistical hurdles like price differentiation tech, service stations highlight practical challenges. Luz Mila Moyano of Huila distributors questioned dual pricing at pumps, and Fendipetróleo stressed they do not control prices, urging uniform national rollout to prevent regional distortions.
