The arrival of Gustavo Petro to the Presidency of Colombia has sparked changes and ideas that generate controversy among citizens and various sectors of the economy. Among the balloons launched into the air recently, the intention to take control of the Energy and Gas Regulation Commission (Creg) and the increase in the price of gasoline stand out, both ideas due to the prices they register. But, how is Colombia compared to other countries in the region?
According to data from Global Petrol Prices, a platform that constantly monitors the cost for citizens of raw materials, the country is among those that present a cheaper rate among those nations that make up Latin America and the Caribbean, added the United States for its relevance. .
The ranking of the cheapest gasoline is led by Venezuela, with US$0.022; followed by Bolivia, with US$0.542 and Colombia, with US$0.557. Ecuador stands out in fourth position, with US$0.634, and Trinidad and Tobago in fifth, with US$0.997. These areas are even above major oil exporters such as Brazil and the United States. Where it is more expensive is in Barbados (US$2,176) and Chile (US$1,521).
In terms of electricity, the positions change. Cuba leads there, with US$0.030; Argentina, with US$0.042; Paraguay, with US$0.058; Mexico, with US$0.086 and Ecuador, with US$0.096. Colombia is in eighth place with US$0.133. Where this input is most expensive, measured in kilowatt hours, is in Guatemala (US$0.258), Venezuela (US$0.243) and El Salvador (US$0.225).
Alejandro Reyes, chief economist at Bbva Research, explains that, in terms of gasoline, these rates are given because a subsidy has existed for a long time that has kept free prices comparable to the real value of the fuel at an international level. “In the case of energy, although we are not the cheapest, there are factors that help reduce costs, such as the fact that the input we use is hydraulics, which generates lower costs,” he mentions.
The World Bank estimates that the food and energy price shocks caused by the Ukraine war could last for years. The multilateral organization assures that the increase in energy prices in the last two years has been the most pronounced since the 1973 oil crisis.
This increase in international crude oil prices has led gasoline to hit record highs in several countries around the world, such as the United States, where the average exceeds US$4 per gallon in the country’s 50 states for the first time.
However, the pressure on fuel prices has varied significantly across economies. As usual, the countries that tax gasoline the least are those with the lowest prices.
According to the study, the average price of gasoline around the world is US$1.39 per liter. However, there is a substantial difference in these prices between all countries. He assures that the general rule is that the richest countries have higher prices, while the poorest countries and those that produce and export oil have significantly lower prices.
In addition, he says that the differences in prices between countries are due to the various taxes and subsidies on gasoline. All economies have access to the same oil prices on international markets, but then decide to impose different taxes.
In the old continent, the inhabitants pay up to US$2,243 per liter of gasoline, in the case of Iceland. Some of the highest prices are in Hong Kong, at $2,967; Zimbabwe, with US$2,573; Central African Republic, with US$2,272; Norway, with US$2,189; Barbados, with US$2,176 and Switzerland, with US$2,104.
As far as electricity is concerned, the highest values are found in Bermuda, with US$0.412; Denmark, with US$0.382; Cayman Islands, with US$0.348; Germany, with US$0.332; the Netherlands, with US$0.329; United Kingdom, with US$0.320 and Spain, with US$0.317.
“Although an increase in prices could drive the energy transition, there are still not enough sources to replace this type of fossil fuels, which would imply a greater expense in people’s pockets,” concludes Reyes.
The average price of diesel is US$1.36 per liter worldwide
Another of the inputs that are usually in common use is diesel, a material that is usually used for heavy machinery since it offers greater energy power due to its higher density. The average price of this product throughout the world is US$1.36 per liter, with Iran (US$0.011), Venezuela (US$0.022) and Libya (US$0.030) being the cheapest. Among the highest are Zimbabwe ($2,840), Hong Kong ($2,765), and Switzerland ($2,357). In Colombia it has a value of US$0.547.