With a price of a gallon of gasoline in Colombia that already exceeds 13,000 pesos in some cities and whose final value this year will be 16,000 pesos, some sectors are already analyzing the legal ways through which the value of fuel can be reduced and in such a way that it stops putting pressure on the cost of living of millions of Colombians. It is sought that the cost of gasoline be reduced between 1,500 and 2,000 pesos and for this, the Conservative Party announced that it presented a bill in the legislature that is about to beginso that this can be a reality.
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According to what was stated by Wadith Manzur, a member of said political party that will lead this initiative, 32 percent of the total cost of a gallon of this fuel corresponds to taxes, among which are a departmental tax, a municipal tax, VAT, carbon tax and a national rate.
If it is possible to eliminate or reduce these fuel charges, a reduction of between 1,500 and 2,000 of those could be achieved, according to what was proposed by the spokesperson for that party.
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As is known, the price of a gallon of gasoline has been adjusting at a rate of 600 pesos per month and the idea is that by the end of 2023 its cost will be around 16,000 pesos. In October of last year, when this policy began, that increase was 200 pesos.
What the Government seeks is to end a deficit that was occurring in the Fuel Price Fund (FEPC), through which the price of that fuel is subsidized.
It is not the first time that formulas have been proposed to reduce the cost of a gallon of fuel, but so far none of the alternatives proposed for the same purpose have succeeded, so there are those who consider that it will be difficult for this new opportunity to achieve that goal.
taxes
The Police inspected the stations.
But how is the price of a gallon of gasoline calculated? To average the price of a gallon of gasoline or that of the ACPM, the income to the producer, biodiesel, the national tax, the land tax, distribution margins and transportation are added.
Each of these aspects, in different percentages, adds up to the total fuel price. So things have to:
Income to the Producer
It is the value that the Government pays to the oil supplier, that is, the owner of the refinery, which in this case is Ecopetrol, per gallon of gasoline or ACPM and which represents almost 50 percent of the total price.
biofuels
The second payment corresponds to the Biofuel that is mixed with gasoline. In Colombia, ethanol is used. It is calculated that the average percentage for the purchase of Biofuel represents 7 percent of the total sum.
Tax to the Nation and territorial tax
The government rejected taxing the gallon of gasoline and ACPM. The collection of these taxes goes both to the national government and to the municipal and departmental governments. Adding both taxes, they represent almost 26 percent of the total cost of fuel, that is, 13 percent for both types of taxes. This includes aspects such as VAT, among other surcharges.
distribution margins
The cost per gallon also includes what must be paid to wholesale and retail distributors. This remuneration to distributors is 10 percent of the total price.
transport
Finally, transportation costs represent 6 percent of the gallon of gasoline. Thus, the most important variables to determine the price of a gallon of gasoline are income to the producer and taxes.
