The Ministry of Finance confirms that the September increase in diesel fuel will continue

Following reports that the government would suspend increases in the price of diesel, the Ministry of Finance has confirmed that the price of this fuel will remain at the increase announced at the end of August.

(Read more: Sales in Bogotá have fallen by 80% due to expensive transport, Fenalco said)

On Friday, August 30, the Government reported The price of a gallon of diesel would rise by $1.904adjustment that became effective on Saturday, August 31.

Since the increase was implemented, there have been protests in different parts of the country on behalf of transporters and the impact that this increase could have on their sector, especially on operating costs. In total, There are reports of about 36 blockages on different road corridors throughout the national territory.

Given this situation, the Minister of Transport, María Constanza García, proposed not to make new increases to the price of diesel in the short term. This while dialogue tables are being held to discuss “other points that require priority attention from the Government” and they come to “clear solutions”.

That is to say, the pending increases will be discussed between the parties.

(Read more: Government measures to address the effects of the cargo transport strike)

(More news: Truckers’ protest: Prosecutor’s Office opens investigation into the blockade of 36 roads)

It should be remembered that a few days ago the Minister of Finance, Ricardo Bonilla, announced that three increases would be applied to the price of diesel fuel. In this regard, The second increase is planned for the first half of 2025. and the third and final increase for the second half of next year.

With the first adjustment that was put in place, The price of a gallon was $11,360on average. The Treasury justified this increase on the grounds that when a consumer buys diesel at a service station, he or she pays less than 50% of the price charged by the refiner or importer of that fuel.

The increases also aim to close the gap in the Fuel Price Stabilization Fund (Fepc) and are partly due to the fact that the value of ACPM has been frozen for 56 months (since January 2020).

(See: For each day of strike, foreign trade could lose up to 300 million dollars)

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