Colombia Reverses October Gasoline Price Increase

On October 1 the government announced a gasoline increase of 46 pesos per gallon for October, which Infobae reported as a 0.29% rise. It was tied to an update in the price paid to ethanol producers, one of the components of the gasoline price. In Bogotá, the reference price would have gone from 16,331 to 16,377 pesos a gallon.

The same day, President Abelardo de la Espriella ordered Minister of Mines María Nohemí Arboleda to reverse it: “Le he pedido que revierta el aumento correspondiente al mes de octubre, mientras buscamos soluciones permanentes” (“I have asked her to reverse the October increase while we look for permanent solutions”).

On October 2 the ministries of Finance and Mines confirmed the reversal: “Se revierte el incremento de $46 por galón previsto para octubre.” The government is absorbing the cost, 8.3 billion pesos (COP 8,300 million), as a subsidy. The price of diesel (ACPM) stays the same.

For drivers this means October gasoline prices hold at September levels. The president tied the reversal to finding permanent solutions, so the October decision does not say what happens to prices after this month.

Sources: El País Cali, October 2, Infobae, October 1.

Source: El País Cali