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Colombia’s government will pay state-run oil company Ecopetrol (NYSE:EC) more than 8T pesos (~$2B) for its cash contribution to the Fuel Price Stabilization Fund corresponding to Q3, Reuters reported Monday.
A resolution, signed by Colombia’s finance minister, ordered the payment be made to Ecopetrol (EC), which often receives large sums of money from the government for its refining and fuel import operations to ease the impact of international fuel price fluctuations in the country’s domestic market.
President Petro’s government has gradually increased gasoline prices in an attempt to cut the deficit, although it has kept diesel prices stable; it is looking to raise gasoline prices to international levels, which could see a gallon of fuel hit 16K pesos (~$4/gal) in the coming months.
