From January 2022 to December 2025, gasoline prices surged nearly 74%, escalating from approximately COP 9,210 to nearly COP 16,000 per gallon in major Colombian cities. Diesel prices rose more modestly from around COP 9,100 to COP 10,885 in the same period, kept below international parity (about COP 16,860) through a subsidy mechanism funded partly by gasoline surpluses and government budget contributions. This cross-subsidy aims to shield diesel-dependent transport sectors but accrues a fiscal deficit estimated at COP 3.8 trillion by 2025, the lowest since 2020, reflecting government efforts for gradual price alignment.
December 2025 saw a diesel price increase of COP 100 per gallon, a move significant for public finances as it reduces subsidy burdens. Concurrently, highway tolls rose by over 9%, with key routes such as Cisneros, Pipiral, and the Túnel de Oriente charging up to COP 31,879 per toll for light vehicles. Transport industry stakeholders criticized the disproportionate toll burden on heavy trucks, which represent roughly 20% of traffic but account for 41% of toll revenues, prompting calls for tariff policy revision to maintain logistics sector competitiveness.
Entering 2026, gasoline and diesel prices increased again by approximately COP 90 and COP 99 per gallon respectively, with regional variances placing Villavicencio and Cali among the cities with highest fuel costs. Regulatory updates also addressed more accurate cost structures for biofuel components, such as ethanol, aiming to align producer incomes with real production costs and market conditions, potentially moderating fuel price volatility and improving subsidy sustainability. These dynamics position Colombian fuel pricing as a complex interplay between administrative controls, subsidy recalibration, infrastructure funding, and international market influences.
This article was curated and published as part of our South American energy market coverage.
