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Colombia Needs Fuel Hike After Wasted Bonanza, Public Credit Chief Says

  • Public credit director Acosta speaks in interview in Bogota
  • Sees fuel subsidies as ‘cursed legacy’ from last government
Motorcyclists wait in line at a gas station in Cucuta, Colombia.

Motorcyclists wait in line at a gas station in Cucuta, Colombia.

Photographer: Ivan Valencia/Bloomberg

Colombia needs to increase fuel prices and phase out budget-busting subsidies, which are a “cursed legacy” from the previous government, according to a senior finance ministry official.  

At current prices, the government estimates that it will spend the equivalent of about 3% of gross domestic product this year to keep gasoline and diesel prices down, which is about what it spends on defense.