As global fuel prices fall, Colombians are not saving at the pump

World Today

As oil prices plummet, petroleum based economies have been feeling the negative effects. Colombia is one of those countries that expects the fall in oil prices to lower its tax intake and economic growth.

While the international price for oil fell, Colombians have noticed the cost of filling up their gas tanks stays the same.

CCTV America’s Michelle Begue reports from Bogota.

As global fuel prices fall, Colombians are not saving at the pump

As oil prices plummet, petroleum based economies have been feeling the negative effects. Colombia is one of those countries that expects the fall in oil prices to lower its tax intake and economic growth.

Today Colombians pay about $2.60 cents a gallon, while the US pays $1.88.

The Government decided to tie the price of gasoline to the international price when the price was very high. And they did that to benefit their company Ecopetrol which is an oil exporter, but also to benefit international oil companies who export to Colombia.

The government says they have a formula to set the price. 50 percent goes to the producer, and the rest is needed taxes, transport costs and other payments factored in.

Despite the reasons, it is hard for Colombians to look past the fact that the price has only fallen a total of 12 percent since 2012.