Colombia’s Producer Price Index (IPP) registered an annual decline of 2.63% in December 2025 compared to the same month in 2024, according to La República citing DANE data. The IPP measures price changes at the producer level before goods reach consumers, serving as “an early signal of what may happen later with inflation.”
Colombia’s Ministry of Mines and Energy issued Decree 1428 of 2025, removing private, diplomatic, and official vehicles from diesel price subsidies supported by the Fuel Price Stabilization Fund (FEPC).
Colombian business sectors have launched coordinated legal challenges against President Gustavo Petro’s government over both the 23% minimum wage increase and the broader economic emergency decree.
President Donald Trump warned Cuba it will no longer receive money or oil from Venezuela, stating the island has been “living for years” thanks to Venezuelan money and crude in exchange for “security services” for “the two last dictators (Hugo Chavez and Nicolás Maduro).”
President Gustavo Petro’s surprise 23% minimum wage increase for 2026 forced Colombian financial analysts to hastily revise their macroeconomic projections on New Year’s Eve, with expectations shifting dramatically for inflation, GDP, dollar exchange rates, and unemployment.
We should just write 500 words on why accurate forecasting this year will be impossible, add 200 words on the benefits of scenario-based planning and try to otherwise keep our head down. But we promise you courageous comments so here we go.
The Colombian gas producer published an update press release on its website. We also picked up an item on CNE from Superservicios.
President Gustavo Petro requested that state-owned Ecopetrol substantially reduce internal natural gas prices as Colombia confronts a growing gas shortage forcing dependence on costlier imports. According to the country’s commodities exchange, internal gas production is projected to fall up to 20% below demand next year.
Colombia’s Works for Taxes (Obras por Impuestos) mechanism will begin 2026 without an approved quota, according to the Territorial Renewal Agency (ART), which confirmed that despite inquiries from companies, territorial entities, and community organizations, the maximum amount for 2026 remains undefined.
Colombia’s government seeks to convert a transitional 1% tax on petroleum, gas, and coal extraction into a permanent levy through an economic emergency decree, following Congress’s rejection of the tax reform legislation that originally contained this measure. Finance Minister Germán Ávila indicated that, after the financing law’s failure, the emergency mechanism would be utilized to recoup resources needed to complete the COP$546T budget.
2026, Hydrocarbons Colombia, All Rights Reserved.
