Overview

The liquid fuel production, distribution and commercialization chain in Colombia starts at oil refineries and biofuels producers.

The National Government, through the Ministry of Mines and Energy, is responsible for formulating the guidelines on prices and the comprehensive management of oil, gas and biofuels while the National Hydrocarbons Agency ensures the optimal and sustainable use of the country's hydrocarbon resources, managing them comprehensively while aligning the interests of society, the State and sector companies.

Colombia has two oil refineries (Barrancabermeja Refinery and Cartagena Refinery - Reficar), both owned by Ecopetrol, which have an installed capacity of 1,958 million barrels. This amount supplies the total fossil fuel demand in the country while oil surplus is used for export.

Biofuel production in Colombia is concentrated in seven fuel ethanol production plants with an estimated capacity of 1.76 million liters per day and ten biodiesel producers in six departments with an installed capacity of 2.1 million liters per day.

Around 50 supply facilities currently manage 17 wholesale distributors, where TERPEL has the largest market share, holding 40.8% of the total sales volume. In addition, the country has a retail distributor network comprising approximately 5,570 gas stations. Fuels are transported by tanker trucks to gas stations or major institutional consumers (industries, airports, transportation companies, etc.)

Below is a list of the main fuel companies in Colombia:

• TERPEL: The company has a market share of 40.8% of total sales and a national network of 300 gas stations online connected, in addition to the largest natural gas vehicle network in the country operating under the Gazel brand.

https://www.terpel.com/

• BIOMAX: The company ranks second in the national market share with 16% of sales in wholesale and retail distribution of petroleum-derived liquid fuels. It has a total of 769 gas stations. BIOMAX products for wholesale and retail fuel distributors are: Diesel, gasoline, Jet A-1 turbine fuel.

https://www.biomax.co/

• ENERGIZAR AVIACION: Colombian company dedicated to aviation fuel sale and supply in the country. It has 35 years of experience, making it a leader in this market segment. It has 3 major terminals of its own, receiving directly from Ecopetrol's polyduct network, and 20 fuel stations placed near the most important airports in the country.

          http://www.energizar.org/

• PETROMIL: Colombian company dedicated to aviation fuel sale and supply in the country. It has 30 years of experience, making it a leader in the fuel and gas supply chain.

https://www.petromil.com/

• EXXONMOVIL DE COLOMBIA: The company ranks third in fuel sales with a 15% domestic market share with 420 gas stations nationwide.

https://corporate.exxonmobil.com/

• PRIMAX: Peruvian company with more than 100 years of experience, dedicated to the sale and supply of petroleum-derived liquid fuels. The company started operations in Colombia in 2018 by acquiring Esso and Mobil gas stations. By July 2020, the company had around 750 gas stations nationwide, which has strengthened its market share at the national level.

Fuel Pricing

In Colombia, a "Controlled Freedom” system is in place for the fuel market. The above implies that the Government, through the Ministry of Mines and Energy, sets the current price for fuels by means of a decree/resolution . Distributors and gas stations set their prices without exceeding the price set by the Government.

Average gas or diesel oil price per gallon is calculated by adding producer's income, biodiesel, national tax, territorial tax, distribution margin and transportation costs. Each one of these items, represented in different percentages, adds up to the total fuel price.

Jet A-1 fuel distributors are located at airports nationwide.

For further information on prices published by the Ministry of Mines and Energy, please check the following link.

https://www.minenergia.gov.co/precios-de-combustible

Seasonal Variation in Fuel

Fuel Transportation

Under Article 3 of Decree 1073 of 2015(*), the National Government has reassigned some functions from the Ministry of Mines and Energy to the Energy and Gas Regulatory Commission, including the regulation of liquid fuel transportation operations, among others.

https://www.anm.gov.co/sites/default/files/decreto_1073_de_2015.pdf

Standards, Quality and Testing

Ecopetrol is the company responsible for oil refining in Colombia. Refined fuels are subject to NTC 5444 - NTC 1438 Colombian technical standards, which include most current European Union and United States standards. Although Ecopetrol has its own testing laboratories, some private laboratories are also available, such as: Intertek and Consultoría y Análisis Técnicos- Cyat S.A.

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