Lowering the price of gasoline produced by Ecopetrol does not “resonate” with the Treasury Department

The proposals put forward by the Minister of Mines and Energy, Irene Vélez, regarding the price of petrol “did not sound familiar to the Minister of Finance, Ricardo Bonilla”.

The idea of ​​Minister Vélez during her trip to Portugal, that the international price should not be applied to the gasoline produced in the country by Ecopetrol, was rejected by Bonilla.

Ecopetrol buys gasoline and oil on the international market for its refining process and the gasoline it produces is sold entirely in Colombia, but it could decide to export it and there is the debate, at what price is it exporting it and at what price? selling price in the national market with subsidy,” he added.

Earlier, in an interview with Blu Radio, he had stated “we cannot force Ecopetrol to sell below price. That is price control on Ecopetrol and we are not going to get there. That is why I involve Ecopetrol and the Fiscal Rules Committee in the technical roundtables”.

A differential rate

Similarly, he said that it should be known to what extent a subsidy targeting a type of population can be generated in Colombia.

“We need to maintain fiscal stability and the revenues the government receives from Ecopetrol remain important and Ecopetrol’s financial stability also needs to be maintained, which largely depends on tariffs,” he explained.

Regarding the initiative to introduce a third subsidized gasoline tariff, he indicated that there are already three types of fuel in the country (extra, power and ACPM) and that there is a differential price in the border areas, which has been indicated that it’s not the best alternative.

“This tiered tariff is the one to look for, and especially since in some border areas the tariff is proving to be a very large subsidy for coca processors who rely on gasoline,” he added.

He claimed that everything related to the new method of calculating the price of fuels in the country will be analyzed in working groups between the Ministries of Finance, Mining and Energy, Ecopetrol and the Autonomous Committee of the Fiscal Rule.

He insisted that as part of this work, the proposals will be analyzed and the corresponding decisions will be taken, while respecting the budgetary rule.

price increase

Bonilla said the rate of increase in the price of regular gasoline depends on inflation behavior, both for food and fuel.

He indicated that an increase of an average of $600 per month in 8 months will reach $16 thousand per gallon of regular gasoline, which is the unsubsidized value, and that if it increases by $400 per month, it will take a year to number to reach.

He confirmed that the ACPM price, which has remained stable, will be reviewed in June this year, as initially announced, taking into account the social impact it has.

Source: El heraldo