The president of Colombia, Gustavo Petro, announced yesterday that his government will begin reducing the price of gasoline after having settled a historic debt accumulated in the so-called Fuel Price Stabilization Fund (FEPC), over three years of scheduled increases in fuel prices.
In recent years, this fund had operated as a mechanism to absorb the difference between international fuel prices and the prices paid by consumers in the country, generating a significant fiscal imbalance. Petro argued that, by covering that deficit and with an appreciation of the Colombian peso against the dollar, the state now has room to adjust fuel prices downward, something that could translate into relief for millions of drivers and for the transport of goods.
Although the dates and exact amounts of the reduction have not yet been specified, the announcement marked a clear intention to change course after a cycle of increases that had raised prices in several of the country’s main cities.
Petro announces gasoline price cut in Colombia
Following a response on social media by President Petro to former President Alvaro Uribe, who was accusing the current administration of the growing indebtedness of the state, the government’s intention to begin lowering the price of gasoline was made explicit, after three years of continuous and scheduled increases, in light of the disappearance of FEPC.
This fund was established as an essential tool for managing gasoline prices in Colombia. For years, its main function was to prevent fluctuations in the international market from automatically translating into abrupt changes for the final consumer, compensating for the difference between the international price of a barrel of oil and the price set locally.
However, this fiscal dynamic was not without criticism: Over time, the fund accumulated debts that, according to government figures, reached a considerable level under previous administrations. In this regard, Petro has emphasized that one of the achievements of his administration was settling this liability, reducing the deficit, and, in his words, even generating a surplus that could benefit future governments. For many analysts, the management of FEPC has been a central element in discussions on energy and fiscal policy in Colombia, with direct impacts on inflation and on citizens’ pocketbooks.
By stating that the fund’s debt was paid, Petro directly linked this reduction in the deficit to the possibility of lowering fuel prices, a measure perceived as an attempt to ease the burdens faced by both households and businesses. Nevertheless, the president emphasized that the appreciation of the peso against the dollar would also help lower the costs associated with fuel imports and distribution, opening a window of opportunity to adjust prices without compromising macroeconomic stability.
The controversy over responsibility for Colombia’s growing public deficit
In his comment on social media, amid mutual accusations over who bears responsibility for the growing deficit of the Colombian state, President Petro announced a measure that — if implemented — could benefit thousands of users and professionals.
“Your friend Duque left us a debt of 70 trillion pesos [approximately US$18 billion] from the gasoline subsidy he left us; we paid it in full during my government and, unlike what you did, we will hand over a surplus in FEPEC to the next government. There is always a difference between receiving from Duque an FEPEC with a debt of 70 trillion and handing it over with a surplus now,” Petro wrote on his account on the social network X in response to a claim by former President Uribe.
“Because we have already paid FEPEC’s debt and because the Colombian peso appreciated against the dollar, I inform you and the country that we will begin to lower the price of gasoline,” Petro concluded.
While the measure still lacks a specific timeline, the very acknowledgment of this policy direction has generated expectations in economic and social sectors, in a context where fuel prices are a key factor for both mobility and the overall cost of living.
Ex presidente Uribe, usted dice varias mentiras en su texto.
Usted habla que tomamos un crédito al 12%, no señor, tomamos un crédito en dólares al 5,9%. Por esa razón y la apreciación del peso sobre el dólar, es mucho más barato que endeudarse internamente en pesos al 13,5%, eso… https://t.co/BQvScynVEE
— Gustavo Petro (@petrogustavo) January 15, 2026
Current fuel prices in Colombia
Since the beginning of 2026, the average price of gasoline in the country’s main cities has stood at 16,057 pesos per gallon [approximately US$4.3], while the average price of diesel has been set at 10,984 pesos [approximately US$2.9] per gallon. As a result, January saw an increase of 90 pesos per gallon for gasoline and 99 pesos for diesel.
However, the main price increase is not due to the traditional adjustment at the start of each year, but rather to the controversial government decision to phase out the public subsidy, beginning in 2022. At that time, the average price per gallon of gasoline in Colombia’s main cities was significantly lower than it is today — by approximately 70% — thanks to the public subsidy policy.
With Gustavo Petro’s announcement, the country is showing anticipation regarding the possible future implementation of the government’s intentions, something that could represent significant relief after years of increases that have brought fuel prices to normal international market levels, now free of Colombia’s traditional public subsidies.