Colombia tiene uno de los precios más bajos por galón de gasolina en todo el mundo

Colombia tiene uno de los precios más bajos por galón de gasolina en todo el mundo

As a consequence of the rise in crude oil prices, as a result of the conflict in Ukraine, energy prices, more specifically fossil fuel and oil, have increased in a directly proportional manner. Thus, gasoline prices have become a daily topic of conversation throughout the world, even more so for the governments of nations, who must watch over the internal cost of fuel in their territories.

Currently, the world average price of a gallon of gasoline is around US$4.6 per gallon. In this sense, when comparing the costs of fuel in other nations of the globe and the costs of national fuel, it is discovered that Colombia is one of the countries with one of the lowest prices per gallon of gasoline in the world.

The approximate price of a gallon of local fuel is US$2.46, which is up to 50% lower when compared to other countries such as Brazil, Peru, Canada and Spain, where the cost can be more than US$5.

In fact, Europe has the highest gasoline prices in the world, according to an analysis by Statista. In the old continent, the inhabitants pay up to US$6 per gallon of gasoline; some of the highest prices were charged in the Netherlands, Finland, Germany, Denmark and Norway. One of the exceptions was Germany, where gasoline costs up to $8.61 a gallon.

However, the most expensive gallon of gasoline included in the ranking was sold in Hong Kong for US$10.9. World regions with cheap gas prices included North Africa and the Middle East, as well as Central Asia and Russia.

However, turning to the local context and taking into account the path of high oil prices, in Colombia the recent rise in international crude oil prices has caused an increase in the deficit of the Fuel Price Stabilization Fund (Fepc). Due to this public policy instrument, the country has kept oil prices below the world average and behind the average compared to some Latin American countries.

Corficolombiana’s economic research analyst, José Luis Mojica, explained that last year the fund’s deficit exceeded $10 billion and this year, with the growth in the international price of crude oil, an imbalance would again be generated that would total $12.8 billion. billion, according to the base scenario, an amount that would be equal to 1.1% of the national GDP in 2021.

And, despite the fact that a large proportion of the cost of the gallon corresponds to taxes, this would be the negative side of the increase, since the difference between the Income to the Producer (price set by the MinMinas as remuneration for producers and refiners) and the Price Export Parity (the price of gasoline in the Gulf of Mexico plus transportation charges) is at an all-time high. The foregoing is also proportional to the rebound in international prices while there is an exchange rate that remains high.

In fact, so far in 2022, the differential has averaged 5,982 pesos per gallon.

However, according to Corficolombiana’s analysis, if the benchmark Brent oil price averages between US$90 and US$100 per barrel. the Fepc deficit could reach a range between $14.2 trillion and $17.9 trillion, the equivalent of 1.5% of GDP. This would be the reason why the Government could be announcing a possible increase in the cost of a gallon of gasoline by cities in the following days.

Despite the high prices, the volume of fuel consumed has been growing at an accelerated rate since last year. In 2021, gasoline consumption increased by more than 30% per year and MinMinas data suggests that energy demand levels will remain high.

“Many do not know that in Colombia we have one of the cheapest gasoline prices in the world,” said the Minister of Mines and Energy, Diego Mesa Puyo.