Colombia unrest saps fuel supply, some jabs halted

  • : Crude oil, LPG, Natural gas, Oil products
  • 21/05/06

Violent anti-government protests, looting and roadblocks across Colombia are impeding distribution of fuel, food and Covid-19 vaccines, exposing the deep political fallout of pandemic recovery efforts.

The unrest entered a second week today even after President Ivan Duque this week withdrew a controversial tax reform bill that first ignited nationwide demonstrations on 28 April. The aborted bill would have generated sorely needed revenue from a carbon tax as well as a broader levy on income, basic services and LPG, which is widely used for cooking, sparking outrage on the streets.

At least two dozen people have died and 900 injured in clashes with police and anti-riot forces. In a rare rebuke of its close ally, the US State Department called for police restraint, while also denouncing the violence and vandalism that have marred the protests.

Duque blames criminal organizations financed by drugs traffickers for "hiding behind legitimate social grievances to destabilize the country." In an ominous step, the government was forced to partially suspend Covid-19 vaccinations — which had only been fully administered to 3.5pc of the population — because of access and safety issues.

Colombian fuel retailers association Fendipetroleo estimates that nationwide motor fuel sales have plunged by 30pc from February levels of 138,000 b/d for gasoline and 117,000 b/d for diesel, undoing a return to pre-pandemic demand.

Hard-hit Cali, Colombia's third-largest city, is short of fuel, food and medical oxygen. Valle del Cauca department is virtually cut off with roadblocks on 25 major arteries. In the Pacific port city of Buenaventura, LPG, gasoline and diesel are drying up as the only road that links Cali with Buenaventura is blocked.

State-controlled Ecopetrol reports intermittent roadblocks near Barrancabermeja, where it operates a 250,000 b/d refinery. On an earnings call yesterday, Ecopetrol chief executive Felipe Bayon said the company is working with the government to shore up fuel and food supply. "I do hope common sense prevails and that people can understand that we are still in the middle of the Covid crisis, that life and health in parallel to the economic recovery are paramount," he said.

Gas distributor Gases de Occidente said blockades along the Buga - Buenaventura highway are thwarting distribution of compressed natural gas and LPG in Valle del Cauca and northern Cauca department. LPG association Gasnova said nearly 3.5mn people have been affected, and called on municipal authorities to clear the way for distribution.

The government says it is preparing a new, more modest tax bill under new finance minister Jose Manuel Restrepo, the former trade minister who replaced Alberto Carrasquilla.

Carrasquilla resigned after the government withdrew the original tax bill.


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