Colombia Holds Gasoline at US$4.87 a Gallon in October

Ecopetrol's Barrancabermeja refinery, the largest in Colombia, seen across a lagoon in the city (Photo: Yesid Ferney Patiño, CC BY 3.0 via Wikimedia Commons)

COLOMBIA · ENERGY

Colombia has cancelled a small gasoline price rise that was due on 1 October 2026. President Abelardo de la Espriella ordered the reversal, and the state will pay the difference. The average pump reference price in 13 principal cities stays at COP 15,886 per gallon (about US$4.87).

This matters to US readers for two reasons. It shows how quickly oil costs become politics in a major Latin American economy. And Colombia’s state oil company, Ecopetrol, trades in New York under the ticker EC.

All dollar values here use about COP 3,263 per US dollar, the RT rate on 5 October 2026.

A small rise that became a political problem

The planned rise was COP 46 per gallon (about US$0.014), or 0.29%. It would have lifted the average price in the 13 cities from COP 15,886 (US$4.87) to COP 15,933 (US$4.88). The figure is 46 pesos (about US$0.01) per gallon, not 46% and not 4.6%.

The rise came from an update to the price the state recognises for ethanol producers. Ethanol, made from sugar cane, is blended into Colombian gasoline. The change was processed as a formula adjustment, so it would have reached pumps automatically.

Officials said the update was meant to support growers in Valle del Cauca. That department was hit by the earthquake of 10 August 2026, which the Colombian Geological Survey put at magnitude 7.4.

File photo: storage tanks and towers of the Barrancabermeja refinery, Colombia (Yesid Ferney Patiño, CC BY 3.0, via Wikimedia Commons).

How the president stepped in

On Thursday 1 October, the president said he had summoned Arboleda after learning of the increase. He asked her to reverse it and told government bodies to work on alternatives to rising international oil prices.

On Friday 2 October, the Mines and Energy Ministry and the Finance and Public Credit Ministry announced the reversal together. De la Espriella took office on 7 August 2026, so this is an early test of his approach to prices.

The ministries said the ethanol producers’ payment stays in place. The national government will cover the COP 8.3 billion cost (about US$2.5 million) as a subsidy to users during October.

They also promised that future decisions touching household budgets will come with advance notice, figures and plain language.

What Ecopetrol does. Ecopetrol S.A. operates as an integrated energy company. It operates through four segments: Exploration and Production; Transport and Logistics; Refining and Petrochemicals; and Energy transmission and Toll Roads Concessions. The Exploration and Production segment engages in the exploration and production of oil and gas. The Transport and Logistics segment is involved in…

The oil squeeze behind the decision

The ethanol update was small. The pressure behind it is not. Citing analysis by Anif, El Colombiano reported on 1 October that international diesel prices rose about 67% between January and 28 September. The gap to the Colombian price reached COP 8,400 per gallon (about US$2.57).

The newspaper warned that this gap is not the same as the real subsidy, because retail prices include taxes, margins and freight. The state Fuel Price Stabilisation Fund absorbs the difference. That adds pressure to the 2027 budget.

Other costs are also in play. Our report on the September inflation forecast covers the wider price picture. Quake rebuilding is another claim on public money, as the stalled reconstruction fund shows.

Ecopetrol is also in the news over its supply plans, as in our report on its interest in Venezuelan oil and gas. For wider context, see our Colombia hub.

What it means for you

Drivers, delivery firms and bus operators in Colombia pay no extra for gasoline in October. At about US$4.87 per gallon, the reference price stays where it was in September.

Investors in Colombian energy should note the pattern. The government overrode a technical formula within a day. That may calm households, but it can reduce confidence that the formula will be applied as written.

The stabilising factor is a state willing to pay for the freeze. The risks are a larger fiscal gap and another oil price rise before any permanent mechanism exists.

What is not known

The reports reviewed do not say whether the ministries or the energy regulator CREG have published a formal act. They do not give the November price either.

It is also unclear what the permanent mechanism will look like. The ministries said they will seek one so that technical adjustments do not pass automatically to consumers, but they gave no design or date.

For now, the October price is settled. The test comes when the freeze ends and the formula meets another month of high oil prices.

Did Colombia cancel the October 2026 gasoline price rise?

Yes. The government reversed the COP 46 per gallon rise (about US$0.014) after President Abelardo de la Espriella ordered it on 1 October 2026.

How big was the planned gasoline increase?

It was COP 46 (about US$0.01) per gallon, or 0.29%. It would have lifted the average price in 13 principal cities from COP 15,886 to COP 15,933 (about US$4.87 to US$4.88).

Why was gasoline going to rise?

The state raised the price it recognises for ethanol producers, and the formula would have passed the change to pumps automatically.

Who pays for the freeze?

The national government pays a cost of COP 8.3 billion (about US$2.5 million) as a subsidy to users during October.

Sources: Semana, Infobae Colombia, La República, El Heraldo, Portafolio, El Colombiano, El País Cali. Exchange rate: RT, 5 October 2026. Retrieved 5 October 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.

Frequently Asked Questions