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September 11, 2022
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Targeted subsidy for gasoline: the congressman’s proposal

Targeted subsidy for gasoline: the congressman's proposal

In recent weeks, the increases in various items that are important in the country have generated concern in economic sectors and the Government. Along with this, President Gustavo Petro announced this Sunday that the price of gasoline will rise.

(Read: President Petro announces that gasoline prices will rise in the country).

The president justified the decision by a huge deficit in the budget due to a “a growing subsidy to gasoline consumers“.

“The fuel price stabilization deficit due to non-payment by the previous government is 10 billion per quarter. That is almost 40 billion annually. Almost half of the national budget deficit. It occurs by not raising the price of gasoline “wrote the left-wing leader.

The Government seeks to create incentives for the cargo transport union.

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The president also clarified that half of the national budget deficit is due to a growing subsidy to gasoline consumers. Faced with this situation, the former Minister of Finance, José Manuel Restrepo he clarified that “the fuel price stabilization deficit due to non-payment by the previous government is 10 billion per quarter. That is, almost 40 billion annually. Almost half of the national budget deficit.”

(Read: Minhacienda de Duque responds to Petro for statement on deficit).

The debate was also joined by the representative to the Chamber, Katherine Miranda who made a proposal. Through her Twitter, the congresswoman assured that the gasoline subsidy could be focused through the SOAT “only for motorcycles, freight transport and public transport.”

In this way, according to Miranda, the lower class and the price of food would not be affected, which is a risk that is run with the increase in the price of gasoline.

It should be remembered that the Anif had made a call to attention to the president for these subsidies. “The government wants the transition but on the other hand it subsidizes fuel, which is worth 2.5 percent of GDP. In the world today gasoline is worth 20,000 pesos and here 9,500 pesos. I see improvisation and measures are too strong and are not correct, “he assured two weeks ago Mauricio Santa María, president of the study center.

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