Regarding the measure to reduce fuel prices in Colombia, adopted by the National Government within the framework of the declared emergency; the Colombian Petroleum Association (ACP), representing the wholesale fuel distribution companies, wishes to inform the public that:
• Wholesale distribution companies are committed to ensuring the supply of fuels to Colombia, so that the country can move forward during this difficult situation, and to secure fuels for all those who need to mobilize, especially food transport vehicles, medical equipment, Public Force, among others. We also express our support and gratitude to those working on prevention and mitigation actions for this emergency.
• Understanding the circumstances under which the National Government, led by the Ministry of Mines and Energy, made the decision to reduce the reference price of fuels, we comply with the measure and have been preparing for its effective implementation through inventory management, as due to operational conditions and to ensure supply, wholesalers maintain inventories averaging 13 days, being the highest in the entire chain.
• It is necessary to clarify that, by regulation, monthly variations cannot exceed 3%. Understanding that this is an extraordinary case, at an exceptional moment, where the reduction in the price to the final consumer corresponds to 13%, the Ministry of Mines and Energy clarified that “the new prices authorized by the National Government will be applied progressively at wholesale centers and service stations, as the existing fuel inventory prior to the announcement of the measure is depleted, which could take between 2 and 4 days.”.
• It is important to highlight that wholesale distributors are another player in the fuel supply chain, whose role is the collection and wholesale supply to different service stations. Each economic sector has different dynamics and, like many others in this situation, wholesale distribution would also have a considerable negative impact.
• However, we are aware that these circumstances have generated challenges for authorities, citizens, and the business sector; and we hope that the reduction in the price of $1,200 for gasoline and $800 for diesel will help alleviate the economic situation of transporters and all Colombians.
Colombian Association of Oil and Gas