Colombia Needs Fuel Hike After Wasted Bonanza, Public Credit Chief Says
- Public credit director Acosta speaks in interview in Bogota
- Sees fuel subsidies as ‘cursed legacy’ from last government
Motorcyclists wait in line at a gas station in Cucuta, Colombia.
Photographer: Ivan Valencia/BloombergThis article is for subscribers only.
Colombia needs to increase fuel prices and phase out budget-busting subsidies, which are a “cursed legacy” from the previous government, according to a senior finance ministry official.
At current prices, the government estimates that it will spend the equivalent of about 3% of gross domestic product this year to keep gasoline and diesel prices down, which is about what it spends on defense.