The president of the Colombian Petroleum Association (ACP) Francisco Lloreda Mera touched upon the falling price of oil, tax reforms and the outlook going forward, reinforcing the strategic position of the industry for government income.
The government’s formula to fix gasoline prices aims for stability despite changes in the international price of oil, for better or worse. But some are questioning who is benefiting when oil prices have dropped over 20% in the last six months, but fuel prices less than 2%.
Now two years into the General Royalty System (SGR) the flaws and needed adjustments are clear, and the system must be tweaked to meet the intentions that it had during its conception says Senator Marítza Martínez
The Casanare Government Secretary Marlene Gutiérrez Oropeza said that the Interior Ministry has agreed to a “working road map” to deal with the controversial issue of Community Action Committees and their role in the hiring of local labor.
The Senate’s fifth commission held a debate on oil production, energy self-sufficiency and general oil policy, bringing in officials led by the Minister of Mines and Energy (MinMinas) Tomás González and Ecopetrol (NYSE:EC) president Javier Gutiérrez.
The president of the Colombian Federation of Municipalities (Fedemunicipios) is concerned about the effect of falling oil prices and what that means for municipal budgets. But royalty distribution and the national government’s ability to use falling prices as a negotiating tool are also high on his list of concerns.
The former Ministry of Mines and Energy, Amylkar Acosta, says considering the decrease in oil prices Ecopetrol (NYSE:EC) and the industry must lower costs and guarantee a functioning pipeline system in this new scenario.
Government officials have taken a new tone this week, insisting that Colombia is prepared for lower oil prices and that the fiscal budget’s long term fundamentals remain strong.
The president of the Chamber of Oil Goods and Services (Campetrol) Rubén Darío Lizarralde called on the national government to maintain a policy of constant development with the oil industry, in order to keep building and strengthening the sector as a strategic economic pillar.
A proposed bill to make modifications to the two year old royalty system has provoked responses from a number of Senators who are demanding the changes, and accusations from others that recent promises from the central government have already been cast aside.
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