The national government’s monthly increase in the price of a gallon of current gasoline has a direct impact on 17 million gasoline vehicles driving through Colombia’s streets, Andemos president Oliverio García assured.
He argued that with the latest increase enacted by the Department of Mines and Energy of $600 per gallon of gasoline, some warnings are being generated about the rise in the cost of living for Colombians.
He recalled that since October 2022, the national government has introduced the policy of reducing the value of the fuel subsidy in Colombia to reduce the shortfall of the Fuel Price Stabilization Fund, which, according to a report by the Energy and Gas Regulation Commission, has led to (Creg) leading to a report from the Energy and Gas Regulation Commission (Creg) and calculations by Andemos, in a year and a half the price of gasoline has increased by $4,754 (67.5%),
“The increase in the price of gasoline has an impact on many activities in the economy, especially for citizens who have to move daily and for the transport of goods and food. Both motorcycles and vehicles are a fundamental part of people’s income, so the increase in gasoline prices increases the cost of living. Likewise, it should be taken into account that in Colombia the use of individual transport is very frequent, taking into account the limitations of public transport.” said the president of Andemos.
For the union, the high cost of fuel makes it necessary to promote the use of more efficient technologies for the consumption of fossil fuels, such as electric vehicles, dedicated to gas or low dependency such as those that use biofuels and low-power electric hybrid vehicles that consume oil .
In the case of motorcycles, according to Andemos calculations, about 11.3 million people will suffer most from the increase in gasoline prices.
In this sense, the union ensures that measures must be sought to promote the electrification of this means of transport, which has now become the most numerous park.
One of the strategies to spread electric and hybrid technologies is to achieve relative price parity between combustion and electric vehicles.
This parity is achieved by working to improve the emission standards of internal combustion engine vehicles which are currently Euro 2 in Colombia and Euro 4 from August.
“Another strategies to consider to expand the market share of zero- and low-emission technologies is to maintain incentives for all technologies with the aim of achieving a responsible energy transition that adapts to the income of Colombians and contributes to the reduction of emissions,” added García.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
