Colombia’s energy and natural gas companies are raising alarms over the government’s failure to allocate sufficient funds for energy and gas subsidies.
Its late September and most companies have started their planning processes for 2025. By November or December management teams will present their CAPEX budgets and performance targets for approval. For oil-focused E&Ps – and everyone else as well probably – most of the debate will be about the price of Brent.
The Colombian government, led by President Gustavo Petro, confirmed plans to introduce differential pricing for diesel fuel (ACPM).
The Ministries of Mines and Energy and Finance issued resolutions to increase the price of diesel fuel, causing widespread discontent among transportation sectors.
Alejandro Martínez, President of Gasnova, called on the Petro administration to not defunding subsidies for propane used by lower-income households.
Colombia is currently facing a jet fuel shortage due to a technical failure at the Cartagena Refinery, which supplies approximately 35% of the country’s aviation fuel demand—equivalent to 13,000bd.
Colombian Finance Minister (MinHacienda) Ricardo Bonilla denied rumors circulating in various media outlets about an impending increase in the price of diesel in August.
In the first half of 2024, fuel sales at service stations in Colombia experienced a notable decline.
In 2023, companies in the chemical and agrochemical sectors played a significant role in the economy, collectively achieving operational revenues exceeding CoP$18.6T.
The ongoing negotiations between the Colombian government and transporters over diesel price increases remain deadlocked.
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