Colombia is starting to restore fuel supply following two weeks of anti-government marches, looting, roadblocks and violent clashes with police. Juan Carlos Vélez Uribe, president of fuel retailers' association Fendipetroleo, shares the latest on the supply crisis.
Fendipetroleo says the roadblocks have impeded 30pc of supply compared with February. What is the latest on that?
This is our analysis based on two situations in April: Covid-19 quarantines in cities like Bogota, Medellin, Cali and others that were closed for three days a week for four weeks. This really affected sales. From 28 April onwards, sales fell mainly in the cities where there were roadblocks in the center, south and west, notably Cali that was blockaded for more than eight days. This city consumes 350,000 gallons a day and has 157 service stations. Cali wasn't receiving any fuel until yesterday when around 422,000 gallons supposedly arrived, but we have not been able to confirm this. Last night we met with Cali retailers and they told us they calculated that only 75,000 gallons got in.
Other departments such as Cauca, Nariño, Casanare, part of Huila, Caqueta, Putumayo and Choco have serious supply problems. In the coffee area of Quindio, Risaralda and part of Caldas, an agreement was reached to supply 30pc of the required gasoline. Because of the strike and the blockades, we think there was a decline of 25pc to 30pc in total national consumption.
How much fuel is still shut in and where?
It's difficult to assess, but I would say the scenario is much better than it was three days ago. There has been involvement by local officials, governors and mayors in negotiations that have partly cleared up the blockades.
Today there is no fuel in Pasto (in the southern department of Nariño) but hopefully this afternoon trucks will be allowed to load so they can enter tomorrow through a humanitarian corridor of 48 hours. The same could happen in Cauca. En Valle del Cauca 420,000 gallons got through, but it's not clear if this was a one-off which would mean just one and half days of consumption for Cali.
In Caldas, two regions have no fuel. In northern Valle del Cauca there is no fuel, because it normally comes from the Cartago plant which is blockaded. The Pereira plant is supplying 56,000 gallons per day to Risaralda, out of normal consumption there of 180,000 gallons. And in Quindio, they are receiving 32,000 gallons per day out of a normal 100,000.
In Choco department, there is no fuel at all because of a blockade by the armed group ELN. Casanare and Arauca until yesterday had no fuel which is ironic because both departments produce oil. They don't have fuel because of roadblocks at Sogamosa in Boyaca, which may have been lifted last night. And in Huila, local farmers are blocking roads, affecting Caqueta, Putumayo and Amazonas.
We understand a 48-hour corridor has opened through Cali to supply Cauca and Nariño. Nariño is normally supplied from the Yumbo plant in Valle del Cauca through tanker trucks. It is also possible to supply Nariño through Tumaco port, but there are six roadblocks between Tumaco and Pasto. ELN is responsible for two of these roadblocks.
Are more imports needed?
Fuel could be imported from Ecuador, but there is an indigenous blockade between Pasto and Ipiales. Pasto is cut off from Tumaco and Ipiales, so hopefully fuel will come in through Cauca department instead.
How many stations were vandalized and where?
In Cali, there were 70. Another 20 were destroyed. Four were attacked in Barranquilla. There was not only fuel looting, but the stations themselves were destroyed. The vandalism was focused on the convenience stores.
Why doesn't Colombia have more product pipelines to mitigate supply risk?
Bogota, Medellin and Neiva would never be affected because they have pipelines. Cali has problems because the pipeline terminal is outside of the city, and tanker trucks cannot get through from the terminal. On the Caribbean coast, the cities are supplied from Mamonal in Cartagena, and there have not been too many problems. The same is true in Antioquia, Santander and Norte de Santander departments.
Little by little the government is unblocking the roads through dialogue.
Beyond the roadblocks, how much fuel is being smuggled to Venezuela?
This is very complicated. When people talk about contraband some think the service stations are involved. But this is impossible because there are many controls, and we have been very watchful to ensure that fuel to not diverted to Venezuela.
There is theft of fuel from pipelines and cars, or through small valves. The theft is carried out by illegal groups. It is difficult to know how much is stolen.
