tag:blogger.com,1999:blog-3655683135628692725.post2593690955193843362..comments2024-03-29T02:30:11.538-07:00Comments on Mike's Bogota Blog: Why expensive car fuel is a bargain for ColombiaMiguelhttp://www.blogger.com/profile/15388030533444193686noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-3655683135628692725.post-52800883985696339832012-01-29T15:49:00.096-08:002012-01-29T15:49:00.096-08:00here's a good article about petroleum taxes an...here's a good article about petroleum taxes and their use.<br /><br />http://congresovisible.org/agora/post/impuestos-a-gasolina-para-fines-sociales/1564/Miguelhttps://www.blogger.com/profile/15388030533444193686noreply@blogger.comtag:blogger.com,1999:blog-3655683135628692725.post-65828056326870453132012-01-29T15:48:05.486-08:002012-01-29T15:48:05.486-08:00Hi Boris,
Thanks for your comment. EcoPetrol and...Hi Boris, <br /><br />Thanks for your comment. EcoPetrol and the oil industry in general may not pay all they should in taxes and royalties, but they do pay a lot. If the state spends that money badly, that's the state's fault, not the system's. If gasoline were cheaper, not only would the state be using its resources to subsidize private car owners, who are middle and upper class, but presumably it'd collect less taxe money for social ends. You may be right that EcoPetrol should have more competition - but that doesn't change the fact that lower petrol prices would be a gift from the poor to the rich, as well as worsening problems such as air pollution and traffic congestion.Miguelhttps://www.blogger.com/profile/15388030533444193686noreply@blogger.comtag:blogger.com,1999:blog-3655683135628692725.post-30824258021133044242012-01-29T06:29:03.087-08:002012-01-29T06:29:03.087-08:00Totally agree with you BUT what you forget is the ...Totally agree with you BUT what you forget is the Ecopetrol - the one company which makes all the profit from high prices - and its - rich - actionaries, are making the money out of that. Not the government, which in the end receives a fairly small part of taxes.<br />This is colombian typical... a cartel controlling prices in a way which would never be accepted in other countries... where can you find a company which has NO concurrence on the national market and making a 51 percent benefit ?? Mafia business, as usual, so please do not come up with stories on helping poor people through gas prices please !Borishttps://www.blogger.com/profile/15431453746688949961noreply@blogger.comtag:blogger.com,1999:blog-3655683135628692725.post-26668063938439939082011-05-13T17:21:41.225-07:002011-05-13T17:21:41.225-07:00Hi,
Thanks for your comments. You're right t...Hi, <br /><br />Thanks for your comments. You're right that fuel costs contribute to the costs of food, public transport and other items. However, if we want to subsidize food and buses, then we should do so directly. <br /> <br />Subsidizing fuels means giving a lot to the rich in order to give a little to the poor - and causing lots of destructive effects, including traffic jams, pollution and global warming. <br /><br />MikeMiguelhttps://www.blogger.com/profile/15388030533444193686noreply@blogger.comtag:blogger.com,1999:blog-3655683135628692725.post-15171620179377448982011-05-11T17:00:46.827-07:002011-05-11T17:00:46.827-07:00In Venezuela, where fuel is heavily subsidized, ec...In Venezuela, where fuel is heavily subsidized, economists calculated that the wealthy received five times more of the subsidy money than did the poor. <br /><br />People want cheap beer and bread. But they'll benefit much more from good schools and safe streets. <br /><br />MikeMiguelhttps://www.blogger.com/profile/15388030533444193686noreply@blogger.comtag:blogger.com,1999:blog-3655683135628692725.post-11766598950806971982011-05-11T16:58:20.832-07:002011-05-11T16:58:20.832-07:00Thanks for your comment.
You're right that f...Thanks for your comment. <br /><br />You're right that fuel is part of the cost almost everything. But subsidizing SUVs and private cars is a very expensive and inefficient way to cut the price of food and bus fares. <br /><br />If you want to cut the costs of food and public transit, why not just subsidize them directly?<br /><br />MikeMiguelhttps://www.blogger.com/profile/15388030533444193686noreply@blogger.comtag:blogger.com,1999:blog-3655683135628692725.post-73322301618856549012011-05-10T22:32:16.028-07:002011-05-10T22:32:16.028-07:00Oh, and another detail. PUBLIC TRANSPORTATION! Wit...Oh, and another detail. PUBLIC TRANSPORTATION! With the exception of Medellin, most public transportation runs o n gas or diesel. Higher gasoline price will mean higher prices for public transportation. You can't expect that people use their bikes when they live, for example, in Suba and have to travel across the city to get to their workplaces, which in Bogota are mostly in the oriental part, in downtown or in the industrial zone in the south. Public transportation is necessary. Gasoline prices indirectly affect people who don't own a car. I suppose that is why subsidizing gasoline is a good idea. There are other ways for discourage the use of a car, e.g. what Peñalosa tried (but failed) to do: expanding the sidewalks while reducing the car lanes, adding more bike lanes and providing cheaper public transportation.juancamiloghttps://www.blogger.com/profile/16403306821104512541noreply@blogger.comtag:blogger.com,1999:blog-3655683135628692725.post-19947216698663000702011-05-10T22:17:59.857-07:002011-05-10T22:17:59.857-07:00one detail you ignore. goods in colombia (food, cl...one detail you ignore. goods in colombia (food, clothes, etc) are mostly transported, through the roads of colombia, on trucks that need gasoline or diesel to operate. If the gasolline prices rise like crazy, then the cost of transporting goods in Colombia will rise like crazy. If the cost of transporting goods from the production areas to the retailers is high, then the prices of the goods will rise. People earning less than the minimum wage are going to have to deal with more expensive food and clothes. Oh, and that is not taking into account the gasoline needed to operate the machinery used for manufacturing processes. So, high prices for gasoline in colombia is not a good deal. It is the worst deal EVER.juancamiloghttps://www.blogger.com/profile/16403306821104512541noreply@blogger.com