Colombia Prepares for Possible Transportation Strike

The Minister of Finance recalled‍ that the increase, in three stages, was ‌proposed by the carriers themselves in order not to affect ‍the value of freight.

Starting this Tuesday, September⁢ 3, 2024, the Petro Government will adopt “appropriate measures” to face ⁣a⁢ possible⁣ “Lockout: business strike” of cargo carriers, as stated by President Gustavo Petro in his official social network account. The ⁢country will not allow itself to be blocked.

The president explained in his drill that the increase of $1,904 in the price of diesel “is fair, because the money is only​ recovered from ⁢a subsidy that should never have been⁢ recovered and which already‌ accounts for a large fraction of Colombia’s public debt. “, and added that giving food to hungry people and education to our children and youth, “forces us⁣ to equalize diesel ‌prices.”

For his part, the Minister of Finance, Ricardo Bonilla González, explained in radio statements, that ‌the ⁤new price⁤ of ACPM‍ results from the fact that ‍this fuel was frozen for more than ⁣56 months, even before the pandemic.

“This freeze today means a billion pesos a month that Ecopetrol charges us, because it is sold at service stations at a price lower than what Ecopetrol bills for the fuel this,” said the head‌ of the⁣ Treasury portfolio.

He added⁤ that because of this diesel⁢ subsidy, the Change Government paid $56 billion to Epetrol, and this year it has‍ to pay another⁣ $12 billion‍ to the state oil company for the⁣ same concept.

“That is much more than what we have to pay to the International Monetary Fund for the credit it gave the country in 2020 because of the pandemic. Therefore,‌ under these conditions, it⁣ is unsustainable to maintain this load,” he stressed.

The minister recalled that 14‌ work tables had been held with the freight transport​ unions and that different topics were covered but “every time we come to the issue of adaptation, then they ​(the transporters ) says: ‍’no, we can’t adjust the price’, ‌but it’s impossible to keep it frozen.”

And he added that this ⁤same decision​ had already been made with gasoline, which had also been frozen since January ⁤2020, and⁤ that the ACPM adjustment‍ was‍ pending.

“Gasoline‌ is now at the international price, we finished ​adjusting it, it cost us two points​ of​ inflation. The suggestion to make this increase in diesel in ⁣a high figure and not ⁣as gasoline, came from the transport⁤ unions themselves because ⁢if⁢ it was done gradually they⁢ would not be able to adjust the freight rates‌ every month,” explained⁢ Bonilla González.

He added that since it is done in ⁤three adjustments, it implies an automatic⁢ adjustment of freight rates, as has already been done since last week at 7.4%.

Savings⁣ of $400 billion

For her part, the Minister of Transport, María Transporte García, ensured that with the adjustment in the price of ACPM, the country ensures monthly savings of $400‌ billion, that is, $1.6 trillion in the rest of 2024.

He said there will​ be a new meeting with the cargo transport⁤ unions this⁤ Tuesday. “What we want to verify is that there are other‌ measures, ‍other needs. President Petro is calling on us to see⁤ this as an opportunity to modernize the vehicle fleet, the Government⁤ is also interested in promoting the technological calculation of the vehicle ​fleet, decarbonizing transport,” he insisted.

The minister concluded that the increase in diesel means that an ⁤increase of 0.3% is passed​ on to the CPI.

“I am also saying‍ this to send a message of peace of mind that this increase, ⁣which is necessary, will not create an impact that cannot be assumed within the monitoring we have been‍ doing regarding‌ the increase in the ‍CPI .”