The government of Colombia announced that gasoline prices will fall again in March. It will be the second consecutive reduction in 2026, following the decrease implemented in February. The decision entails an additional drop of 500 pesos (approximately US$0.15) per gallon and consolidates a shift in fuel policy after several years of monthly increases aimed at closing the accumulated deficit in the Fuel Price Stabilization Fund.
With this new reduction, the national average price will stand at around 15,000 pesos (approximately US$4.1) per gallon, although the final price will continue to vary by city. The administration says that the measure is possible thanks to the gradual cleanup of the fund’s accounts and a better alignment between domestic prices and international benchmarks.
The announcement comes at a key moment, as inflation — despite the threat of entering a new upward cycle this year — remains stable and the Government seeks to ease costs in sensitive sectors such as transportation and logistics.
“The Government is evaluating how the gap that had opened has been effectively closed, especially in the Fuel Price Stabilization Fund, which originated from keeping the domestic price well below the international price,” said Finance Minister German Avila.
Colombia to cut gasoline prices again in March
Between 2022 and early 2026, gasoline prices in Colombia rose steadily and according to a set schedule. The price per gallon went from levels close to 9,000 pesos (approximately US$2.4) to surpassing 16,000 pesos (approximately US$4.4) in some cities. The goal was to reduce the sizable deficit of the Fuel Price Stabilization Fund, a mechanism created to cushion the impact of international oil price fluctuations and exchange rate movements on local consumers.
For years, the state assumed a significant portion of the real cost of fuel when the external price was above the domestic one. That difference became a growing fiscal burden. To close it, the Government implemented gradual increases that passed part of the adjustment on to users. That strategy helped reduce the imbalance and stabilize the fund’s finances, albeit at the cost of making transportation more expensive and putting pressure on inflation.
Now, the Ministry of Finance says the situation is different. With the deficit virtually corrected and external variables behaving more favorably, the country would have room to adjust prices downward without reopening a fiscal gap. The March reduction is presented as the result of that cleanup process.
The government’s main motivation is technical and fiscal. If the domestic price came to stand above the international price as part of the adjustment effort, today the gap would have been reversed or significantly reduced. In that context, maintaining high prices would no longer have financial justification and could generate an unnecessary surplus in the fund.
There is also a macroeconomic component. Gasoline directly affects the consumer price index. It impacts the cost of public and private transportation, freight rates, and, in turn, the price of food and industrial goods. A controlled reduction could help moderate inflationary pressures and improve households’ purchasing power.
The government has insisted that this is not about returning to generalized subsidies. The official line is that any adjustment, upward or downward, must respond to technical criteria and the evolution of the international market. In other words, pricing policy seeks to be more predictable and less dependent on discretionary decisions.
¡Control en todo el país: supervisamos la reducción de $500 pesos en la gasolina!
Estamos verificando que cada estación de servicio cumpla con la reducción de $500 pesos en el precio de la gasolina. La medida es una realidad y debe aplicarse en todo el país.
Desde el… pic.twitter.com/iswFggD1Cu
— Minenergía (@MinEnergiaCo) February 23, 2026
Impact on regions and sectors of the year’s second reduction
The effect of the reduction will not be uniform. Cities such as Bogota, Cali, or Villavicencio, where the price per gallon is usually among the highest in the country due to logistics and transportation costs from refineries, will see a similar nominal decrease but will remain above the national average. By contrast, border areas with special regimes will maintain structural differences compared to the rest of the country.
For the transportation sector, the reduction represents immediate relief in operating costs. Freight and passenger companies have repeatedly pointed out that fuel prices are among the factors that most pressure their rates. A sustained drop could translate into smaller increases in fares and freight charges, although this will depend on competition and other associated costs, such as tolls and maintenance.
For households, the impact will be more visible for those who use a private vehicle or motorcycle as a work tool. In urban areas, where mobility largely depends on individual transportation, any reduction is directly felt in monthly expenses.
Energy sector analysts warn that the room for further reductions will depend on the behavior of oil prices and the dollar. An unexpected rebound in international prices or a sharp depreciation of the peso could quickly reverse the trend. The Stabilization Fund must preserve its ability to cushion external shocks, precisely to avoid abrupt jumps in domestic prices.