“The liquid fuels sector requires the creation of a National Operations Council to strengthen national supply”: Frank Pearl

• Different events put the distribution of liquid fuels in Colombia at risk in 2024 and demonstrated the need to achieve structured coordination among all actors to ensure supply.
• It is essential to enable mechanisms, such as the National Operations Center and strategic storage, and to allow imports to strengthen the continuity and reliability of supply and meet the demand that continues to grow.
• During 2024, the liquid fuels distribution chain generated revenues for the Nation and the regions of $9.1 trillion, and more than 264 thousand jobs.

The increasing difficulties of social conflict and public order, among other factors that put the supply of fuels in the country at risk, demand structural actions and greater coordination to maintain the continuity and reliability of supply; this is the main conclusion of the economic report “Liquid Fuels: Energy of Today and Tomorrow,” presented by the Colombian Association of Oil and Gas (ACP).

In 2024, there were 147 blockades of plants and roads, more than 300 illegal valves in pipelines, and more than 40 attacks on oil pipelines. In this context, the ACP proposes the creation of a National Operations Council (CNO) for the supply of liquid fuels, as an instance that would promote better planning and coordination both for recurrent operations and in the face of any eventuality and in scenarios with greater import requirements, in which all agents of the chain are co-responsible for ensuring supply.

The creation of this CNO is one of the main proposals and priorities outlined in the report, which records the context of the sector in 2024 and expectations for 2030, as well as a roadmap for energy security in fuels, resulting from the vision of a representative group of agents from the entire chain: refiners, transporters, wholesale distribution companies, and associations representing retailers and end consumers.

“The distribution of liquid fuels is an essential public service and the backbone of mobility in the country. To ensure its continuity, we must work in an articulated and structured manner, anticipating the operational and supply challenges we currently face, as liquid fuels not only guarantee fundamental rights but also support 6% of the country's electricity matrix; for example, last year they sustained national thermal generation and avoided the risk of energy rationing,” said Frank Pearl, president of the ACP.

In addition to the creation of the National Operations Council, according to the agents of the chain, it will be necessary to advance in the structured enabling of imports, develop pipeline and strategic storage projects, promote free competition, and increase the blend of biofuels and the development of sustainable aviation fuel (SAF), Pearl added.

Demand continues to grow

According to the Report, the total consumption of liquid fuels (gasoline, diesel, and jet) in 2024 grew by 0.61% compared to 2023, averaging 347 KBD (thousands of barrels per day). Diesel demand increased by 5.21% and aviation fuel (jet A1) by 9.51%, showing that it is the fuel with the greatest growth potential for the coming years; while gasoline consumption (regular and extra) fell by 5.91%. Thus, considering the country's refining capacity and the presented situational events, the import of 391% of the demand for regular gasoline, 81% of diesel, and 2.41% of jet A-1 was necessary.

Going forward, total demand would grow, on average, by 1.21% in 2025 and by 1.81% annually in the medium term (2026-2030). This, considering the current production capacity, will imply structural imports: in gasoline of up to 351% between 2025 and 2030; in diesel, up to 101% between 2027 and 2030; and in jet, up to 161% between 2025 and 2030; a projection that does not take into account the situational imports that may be required to ensure supply in the face of force majeure events, changes in the operational conditions of refineries, and/or maintenance.

1.9 trillion in fiscal contributions

According to calculations by the ACP, in 2024, the activities of the liquid fuel distribution chain represented 1.51% of GDP, generated 264 thousand jobs, and taxes on gasoline and diesel consumption represented 1.9 trillion in fiscal revenues, of which 1.5 trillion went to the national government, and 1.3 trillion to territorial entities.

Finally, Frank Pearl, president of the ACP, reiterated that “the reliable, continuous, and efficient supply of liquid fuels is fundamental for Colombia's energy security, for economic stability, social well-being, and the guarantee of fundamental rights such as health, education, and work, by enabling the operation of private vehicles, public and freight transport, airplanes, ships, and critical activities such as the transportation of food, medical supplies, and ambulances.”.

See Economic Report