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We used to joke about the Colombian government’s “Magic Formula” which it supposedly used to set gasoline and diesel prices. Events of the past few years have proven that, if there ever was a “magic formula”, governments abandoned it in the pandemic. Politicians set prices using political criteria (what a surprise!) and economics or finance play a limited role. Now the Petro government sends signals that it plans a radical restructuring of fuel pricing and we think it shows it / his thinking about the broader energy sector.