This Monday, President Gustavo Petro made a particular request to Colombians: «Consume less gasoline in everyday life». Consider that, in this way, the country’s economy can do better.
For the president, lower consumption will reduce gasoline imports. And it is that in Colombia, monthly, approximately 200 million gallons of this fuel are consumed; Since Ecopetrol produces approximately 165 million gallons, the shortfall must be imported.
(Also read: For the second consecutive month, gasoline rises $ 600: this is how the rate remained)
The economy is doing well, but I want it to go better. On the foreign trade front, it is essential that we reduce fuel imports, especially gasoline. That depends on you, let’s make efforts to consume less gasoline in our daily lives. Start with me…
— Gustavo Petro (@petrogustavo) June 12, 2023
Gasoline consumption depends on how the economy is doing and the speed of the transition
Contrary to what Petro says, the president of Analdex, Javier Díaz, states that what is required is to increase exports to have the necessary foreign exchange to import goods that are not produced in the country or that are produced in insufficient quantity.
Meanwhile, the president of Anif, Mauricio Santa María, assures that Gasoline consumption depends on how the economy is doing and the speed of the transition, not the other way around.
Meanwhile, Juan Camilo Pardo, economic research analyst at Corficolombiana, comments that, for now, there is no consensus on whether reducing gasoline consumption has a net effect on economic activity.
In addition, he says that the increase in the oil consume may indicate economic growth and an increase in domestic demand. «When consumers are able to spend more on fuel, they are likely to be able to spend more in other sectors,» he explains.
(Also read: The price of gasoline will continue to rise throughout the year and could be 600 pesos each month)
Taxi drivers disagree with request
President Gustavo Petro’s request did not go down very well with taxi drivers either. The union leader Hugo Ospina assures that «To make a call to not consume gasoline would be to stop the taxis and not provide the service».
This request was also made a few days ago by the Minister of Transportation, William Camargo. «I ask the minister to tell us how fuel is optimized; I have been a taxi driver for 35 years and I know how to optimize,» he said.
Likewise, he stated that, to optimize gasoline, it is necessary to have a better quality fuelthat it is not mixed with ethanol and that it has some additives that give it a higher octane number.
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Hugo Ospina also recorded the president who, during his political campaign, promised that taxi drivers would have differential pricesproposal for which he won the support of the union.
However, this has not happened and they are currently paying a gasoline that has become more expensive by 3,200 pesos in nine monthswhich has significantly affected the finances of taxi drivers.
For this reason, many drivers have decided to migrate to the digital platforms in the search for savings, since they do not require social security and other requirements that translate into expenses.
Due to these discrepancies, the taxi drivers will decide at the end of this week which day they declare ‘zero hour’ to strike, which could include the blockade of airports in the country.
(Also read: Gasoline price: Government reviews formula to have differential rates)
conflicting requests
Restricting and/or eliminating this tax benefit could hinder the energy transition
The energy transition that Colombia undertook a few years ago contemplates reducing the use of fossil fuels. For this reason, electric vehicles are viewed as a great alternative, not only because of the high cost of gasoline today, but also because they are more environmentally friendly.
However, while the president asks to lower gasoline consumption, the Ministry of Commerce, Industry and Tourism is preparing a decree that it would eliminate the 0% tariff benefit for the importation of electric vehicles, granted in 2019.
(Also read: This is the sale of electric vehicles in Colombia)
This benefit applies to the free import of electric vehicles originating from those countries with which Colombia does not have trade agreements, such as China and Japan, which would represent a strong setback for the energy transition of the sector.
According to Andemos, press and/or delete this tax benefit it could hinder the energy transition and limit the options available to consumers interested in purchasing cleaner and more efficient vehicles.
Likewise, it states that the policy of incentives for hybrid and electric vehicles has made Colombia a regional benchmark. However, the penetration of this type of vehicle does not reach 1 percent of the country’s vehicle fleet.