Both the Minister of Mines and Energy (MinMinas) Tomáz González and the Colombian Petroleum Association (ACP) have chimed in on the falling price of oil, which both say could have a strong impact on government budgets if production does not increase to compensate, along with reserves.
The Minister of Mines and Energy Tomás Gonzalez said the government’s current formula to set the price of gasoline and diesel is working and no new fuel law is being considered. The transportation industry reacted calling for a review of the formula and taxes.
With the global price of oil falling to below US$90 a barrel, the government has a new problem on its hand beyond the usual triad of licensing, social conflict and security. Just based on the price difference, the national budget could be CoP$12.5T (US$6T) short of the Ministry of Finance (MinHacienda) projections
A number of villages in Yopal have rejected Parex Resources (TSX:PXT) Crytpo-1 project on grounds it would affect the water supply, while the company says the community will not hear their side of the story and assures the water would be safe.
As the US approaches self-sufficiency, the need for Colombia oil imports diminishes somewhat. A concern but not yet a problem.
The number of natural gas vehicles (NGV) has reached half a million according to government figures, and fuel service giant Terpel says its distribution network is now sufficient to continue growing the market.
Both global benchmark oil prices, WTI and Brent, slid all through the third quarter finishing 13.5% and 16.5% (respectively) below where they were at the end of the second quarter.
The Ministry of Mines and Energy has published fuel prices for the month of October, which will see a slight increase in both unleaded gasoline and diesel, the latter a result of increased biodiesel prices.
The Ministry of Mines and Energy, Ecopetrol (NYSE:EC) and local authorities have established a fixed price for fuel on the shared border with Venezuela, as authorities from both countries look to limit the contraband fuel market.
MinMinas recently raised gasoline prices by a minor amount but that triggered the usual comments that gasoline prices should be cut.
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