economy and politics

Project seeks to subtract up to $2,000 from the price of gasoline


The price of gasoline continues to rise in the country. And, as explained by the Ministry of Finance, the increases will continue until touching the level of $15,500, approximately.

However, from some sectors other alternatives are being analyzed so that the value of fuels can be reduced and in this way alleviate the pocket of Colombians.

(Read more: The floor and ceiling of taxi fares, how will they be?)

Bearing this in mind, with the beginning of the second period of the legislature, on July 20 the Conservative party will present before Congress a bill that seeks to reduce the cost of gasoline by more than $1,500.

As explained by Wadith Manzur, representative of the party that will lead the initiative, in conversation with Blu Radio, 32% of the total price of a gallon of this fuel corresponds to taxes, including a departmental tax, a municipal tax, VAT, a carbon tax and a national tax.

“If we put up a discussion where these taxes are reduced or in some cases we can eliminate them, we will be able to reduce the value of fuel between $1,500 and $2,000,” he pointed.

(More news: They prepare a measure that eliminates fuel subsidies to large companies)



Why is the cost of gasoline going up?

The National Government has been advancing a strategy that aims to prevent the deficit registered by the Fuel Price Stabilization Fund (Fepc) from continuing to widen.

To clean up this gap in finances, since October 2022 a policy to reduce the value of the fuel subsidy was implemented, and the price of gasoline began to increase.

(Read more: Gallon of gasoline will not reach $16,000: Minhacienda calculates another cap)

As explained by the Executive, the objective of this increase is also to reduce the fiscal impact on public finances, since there is still a significant gap between local prices and international prices.

The last increase in rates was made last July with an increase of $600, which places the average cost per gallon of electricity at $12,964.

Where do the fees come from?

In order to average the cost of a gallon of gasoline or ACPM, a calculation is made that adds the producer income, biodiesel, national tax, land tax, distribution margins and transportation.

The foregoing taking into account that each of these components contributes differently to the total price of fuel.

(See: Gasoline has a hard impact on inflation, which fell to 12.13% annually in June)

In that order of ideas, the percentage distribution is as follows:

– Income to the producer: 50%
– Biofuel: 7%
– Tax to the Nation and territorial tax: 26% (13% for each one)
– Distribution margins: 10%
– Transport: 6%


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