2024-09-14 04:47:43
The new tax reform project of the Government of Gustavo Petro proposes a significant adjustment to the carbon tax, with the aim of reducing the use of fossil fuels. This change, which will increase the cost of gasoline and diesel by more than 2.5 times, promises to have a direct impact on the pockets of consumers and on various sectors of the economy.
HUILA DAILY, CURRENT NEWS
The new tax reform project of Gustavo Petro’s government aims to collect around $12 billion, and one of the key points is the adjustment to the carbon tax, which seeks to discourage the consumption of fossil fuels. This tax will be calculated based on the greenhouse gas (GHG) emission factor for each type of fuel.
In particular, Article 21 of the proposal states that “the national carbon tax will have a specific rate considering the greenhouse gas emission factor for each fuel.” This rate will be expressed in weight units of carbon dioxide equivalent (CO2eq) per energy unit, resulting in a rate of 1.59 UVT per tonne of CO2eq.
The Confederation of Retail Distributors of Fuels and Energy (Comce) has analyzed the impact of this measure, concluding that the new tax will imply an increase of $425.29 per gallon of gasoline and $488.17 per gallon of diesel. These increases, which represent increases of 2.5 and 2.6 times, respectively, consider the mixture of alcohol and diesel at 10%.
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The Comce report also warns that the average price of a gallon of gasoline could rise from $15,881.48 to $16,306.77, while diesel would increase from $9,711.24 to $10,199.41. However, the increase could be greater, since the regulations establish that the tax will rise 1% above the UVT, which could bring the price of gasoline to $951.17 and diesel to $1,089.18. Given that the current UVT is $47,065, these increases would be significant, with a considerable impact on costs for consumers.
Energy experts have expressed concern about the effects of these measures on the domestic and business economy. The main areas of impact include:
1. Cost of living: Rising fuel prices could lead to a general increase in the prices of goods and services, as transport is essential in the supply chain.
2. Energy and environmental policy: Although the tax seeks to reduce the use of fossil fuels, the transition to cleaner energy could face difficulties due to high infrastructure and accessibility costs.
3. Industrial competitiveness: Companies that depend on fossil fuels could be forced to adjust their prices or look for sustainable alternatives, which would be a costly and lengthy process.
On the other hand, the price of diesel has also been a topic of discussion following the truckers’ strike. As of September 7, the price of a gallon of diesel fuel was $9.856, after reaching $11.360 between August 31 and September 6. This represents a net increase of $400 compared to the previous value.
It was also announced that the next adjustment will be $400 per gallon and will come into effect on December 1, 2024. In total, the price of diesel will have increased by $800 by the end of 2024, according to the agreement between the government and the transport bases.
Finally, the average reference price for gasoline, according to the Energy and Gas Regulatory Commission (Creg), was $15,985 as of August 3, 2024.
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