The Colombian government implemented, starting yesterday, Feb. 1, an official reduction in the price of a gallon of gasoline that marks a significant shift after years of sustained increases.
The decision, taken by the national administration and formalized through resolutions and decrees signed by the minister of Mines and Energy and the minister of Finance, responds to a fiscal reordering process aimed at closing gaps with international prices and cleaning up the accounts of the Fuel Price Stabilization Fund (FEPC).
The adjustment consists of a uniform reduction of 500 pesos (approximately US$0.15) per gallon nationwide, leaving behind price levels that, by the end of 2025, had far exceeded 16,000 pesos (approximately US$4.4) per gallon in many cities, and in some cases even more depending on location and local logistical costs.
The measure is part of a strategy publicly announced by the government’s economic ministries as a response to a more favorable international context in crude oil markets and to the need to ease pressure on the budgets of households and productive sectors.
Although diesel prices remain stable under this decision, the decrease in gasoline prices has been met with mixed expectations, reflecting both relief and questions about whether the reduction manages to offset years of increases that directly affected transportation, logistics, and everyday living costs in Colombia.
Gasoline prices fall in Colombia after years of increases
The recent trajectory of gasoline prices in Colombia has been marked by continuous increases that are largely explained by political decisions aimed at correcting fiscal imbalances accumulated in previous years. During past administrations, subsidy policies and the use of the Fuel Price Stabilization Fund made it possible to keep fuel prices more affordable, albeit at the cost of growing deficits in public finances.
When international crude oil prices rose, or the exchange rate pushed import costs higher, the Colombian state absorbed part of that impact, eventually shifting the burden to FEPC. Over time, the fund accumulated considerable debts, forcing the current administration to implement progressive price adjustments to clean up its accounts and prevent the continuation of an unsustainable fiscal gap.
The result of this process was a steady increase in domestic gasoline prices that led consumers to face historically high figures at the pump. In several of the country’s main cities, the average price rose above 16,000 pesos (US$4.4) per gallon before the February reduction, affecting private drivers, public and freight transportation, and the costs associated with moving goods and services across the board.
With the gradual elimination of subsidies and the adjustment of the price-setting mechanism, the government has argued that it was necessary to restore a closer correlation between domestic prices and international benchmarks, as well as to protect public finances. This perspective has generated debate across different sectors of the economy and public opinion about the balance between fiscal needs and the burden these adjustments place on the population.
¡La reducción de $500 en la gasolina es obligatoria desde hoy en todo el país!
Cumpliendo el mandato del presidente @petrogustavo, el ministro @PalmaEdwin al frente del @MinEnergiaCo, ordenó la aplicación inmediata y obligatoria de la reducción de $500 por galón en la Gasolina… pic.twitter.com/jLllx1kFyp
— Minenergía (@MinEnergiaCo) February 1, 2026
Modest fuel price cut offers limited relief amid broader cost pressures
With the entry into force of the 500-peso (US$0.15) per gallon reduction, the average price fell by about 3.1% compared with January levels. This decrease applies uniformly across the national territory, although variations persist depending on cities and service stations due to factors such as local taxes, distribution margins, and logistical costs.
In border regions such as Pasto and Cucuta, for example, prices ended up well below the national average after the adjustment.
Different voices within the economic sector have interpreted this reduction as a welcome, albeit moderate, relief that could translate into lower transportation costs and a slight containment of inflation in products and services sensitive to fuel prices.
The government has stated that this measure does not compromise fiscal sustainability or the balance of the FEPC, and that it will continue to monitor market conditions to assess possible additional reductions in the coming months, provided international and exchange-rate conditions allow.
However, not all analysts share a fully optimistic view. Some sectors have pointed out that the reduction, although significant, barely offsets a fraction of the increases accumulated over the years, and that the relief for households and more vulnerable sectors could be limited if it is not accompanied by complementary policies to mitigate the impact of transportation and logistics on the cost of living.
This debate underscores the complexity of decisions related to fuel prices in a country whose economy depends deeply on these inputs.
In any case, the measure represents a change in Colombia’s fuel policy by marking a turning point in the relationship between subsidies, domestic prices, and fiscal conditions.
As 2026 progresses, the cumulative effect of these adjustments and the response of different economic and social actors will continue to be a central topic of discussion on the public agenda and in the country’s economic policy decisions.