Liquid fuels market in Colombia in the context of energy transition

The oil and gas industry, and especially the companies grouped in the ACP, understands and shares the National Government's goal of significantly reducing poverty and social inequality and contributing to climate change management, within the framework of a comprehensive energy, macroeconomic, and productive transition.

In this sense, the Association shares the need for a tax reform to continue with fiscal adjustment and seek resources for the Government's strategic programs and agrees to make a tax effort, especially during times of high prices and, if possible, aimed at programs to combat hunger, environmental protection, and territorial peace.

This effort must consider, as a starting point, that the current tax burden applied to the sector will, in itself, allow Colombia to benefit from the high oil prices recorded in the current international energy situation. It is estimated that the cycle of high oil prices for the year 2022 will increase the contribution of companies in the sector to the State by 24 trillion pesos, meaning that the hydrocarbons sector will go from contributing 34 trillion pesos in 2021 to 58 trillion pesos in 2022, an increase in revenue that will benefit millions of Colombians, and almost comparable to the additional revenue expected by the National Government with the Tax Reform under discussion.

In this context, it is important to note that, to generate taxes and fiscal income, not just in the short term but in the medium and long term, and within the framework of a comprehensive transition, the sector must be sustainable and grow. And that to grow, investment is required, and to receive that investment, the country must be competitive.