After Ecopetrol lifted the subsidy it had given of nearly 20% to LPG distributors, the union that brings together this sector, Gasnova, asked the National Government to create a subsidy for this energy source.
(International price of LPG will remain high).
Among the reasons given for this subsidy to be considered is that it mainly serves rural and low-income populations and is the only home public service that does not have this tool.
Alejandro Martínez, president of the association, explained that in Colombia there are 12 million people who consume LPG, which are the same propane cylinders, and the vast majority are from strata 1 and 2. He assured that these populations are very sensitive to increases. prices, so withdrawing a discount, as in the case of Ecopetrol, generates an immediate effect on consumption.
“Between August of last year and January of this, consumption fell 6.5%”, said Martínez and pointed out that this was due to the fact that prices escalated. He argued that once the state oil company decided to offer the discount, consumption recovered and remained stable until July, when the aid was withdrawn again. “The fall at the end of last year is very high and I am afraid that many people stopped buying because of the high price and had to switch to firewood.”
(Ecopetrol increases LPG gas production).
Martínez explained that in July, after the reduction in sales prices to distributors was lifted, The LP Gas cylinder had an increase of 39% for distributors and the transfer in prices was between 14% and 16%, with which consumption fell 10 percentage points.
The proposal that they presented to the Government is that in the case of stratum 1 an aid be given in 50% of the value of the cylinder and in stratum 2 of 40%. According to Gasnova’s calculations, this could cost the Treasury $400 billion a year.
LPG.
“It is estimated that the subsidy for gasoline this year will reach $34 billion, of which $400,000 million could well be taken out to subsidize LPG consumers who use this fuel for cooking,” the leader stated.
Martínez points out that depending on the department, between 70% and 80% of LPG users may belong to the first two socioeconomic strata, concentrated in rural and dispersed areas. “For the Government, within the rural economy that it proposes, this subsidy has a perfect place, which is highly targeted and effective,” he pointed.
Juan Alberto Londoño, former Minister of Finance, explained that given the dispersion in the country, there are places where it is very difficult for the natural gas service to arrive, so LPG is the main alternative. “It makes sense that a subsidy of this type be given,” assured.
So far, the union has already approached the Ministries of Finance and Mines and Energy to explain its reasons. In fact, one of the addition proposals that are being discussed in Congress seeks to integrate resources for this subsidy. This proposal was presented by the senator of the Conservative Party Liliana Bitar.
The senator has stated that the objective of this measure is to democratize the scope of this energy so that the use of other energy sources such as firewood, which is one of the replacement energy sources used, is eliminated.
(Colombia is attractive for the LPG market).
On this point, Martínez pointed out that the effects of using firewood are both health and environmental. He further explained that this would contribute to reducing the energy poverty of dispersed populations.
Londoño points out that for the amount that is estimated it is possible to make adjustments in the allocation of part of the resources. Nevertheless, It would be necessary to evaluate what other program would be defunded to provide this throughout the national territory.
It should be remembered that the Minister of Mines and Energy, Irene Vélez, presented a request for the portfolio budget to increase the destination from the $3.7 billion that was established in the first document to $6.25. This in order to especially increase resources for gas and electricity subsidies for next year.
The addition presented by the portfolio for the natural gas subsidy for $577,000 million.
Amylkar Acosta, Minister of Mines and Energy, explained that to the extent that winter increases the demand for energy, the price will increase, so a subsidy would help mitigate this impact on the poorest.
DANIELA MORALES SOLER
