Colombia reforming fuel pricing, increasing biodiesel blends in 2021

In Colombia, Argus Media reports that at a recent oil chamber annual summit, former mines and energy minister German Arce pointed out the “huge price disparity” between diesel and biodiesel, “one with guaranteed supply and the other with no guarantee” and noted the country’s biodiesel blend mandate will rise to 12pc from 10pc in Q1 2021.

The government is encouraging the voluntary use of higher biofuel blends. In Medellin, Primax is participating in a 20pc biodiesel test, in which participating vehicles are not subject to circulation restrictions. The higher blend has reduced emissions by 74pc and boosted consumption of local feedstock, Proaño said.

Terpel’s Escovar urged the government to regulate biofuels separately and lower ethanol import duties. “Ethanol imports should be free. I believe in price signals, I believe in competition, which is good for the final consumer,” she said.

She noted that ethanol supply logistics are complicated by the concentration of 70pc of production in one area of Colombia.