The Ministry of Mines and Energy of Colombia issued a strong rejection of the recent decision of the Government of Ecuador to trigger the transportation rate for national crude oil.

The increase, which exceeds 900%, raises the cost per barrel from 2.5 dollars to more than 30 dollars for foreign users who use the Trans-Ecuadorian Pipeline (Sote).

For the National Government, this move on the binational energy board is a ‘unilateral and disproportionate’ measure that lacks technical support and seeks to suffocate oil production in the south of the country.

The Minister of Mines and Energy, Edwin Palma, was forceful in describing the measure as a direct aggression that violates historical agreements, specifically the agreement of February 13, 2011.

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Palma warned that the most affected are not only large companies, but also small and medium producers in the department of Putumayo. This sector is the engine that sustains thousands of jobs and social stability in the region, so the rate increase, added to the fall in international prices, leaves these companies on the brink of operational collapse.

In the midst of the tension over the energy crisis, the minister also criticized the National Union Council. Palma questioned the “patriotism” of business leaders, pointing out that while they ask for emergency declarations, they remain silent in the face of Ecuador’s hostility and the national ethanol crisis.

“We proposed dialogue, but they responded with attacks based on excuses. We were about to start conversations and they canceled them to attack again”stated the head of the mining-energy portfolio.

Finally, the National Government reiterated that this price increase ignores the principles of integration of the Andean Community and the spirit of border cooperation.

Although Colombian diplomacy claims to maintain the will to negotiate, the atmosphere is increasingly strained. It is expected that in the next few hours community mechanisms will be evaluated to denounce what Colombia considers arbitrary discrimination in the transportation of hydrocarbons, affecting the competitiveness of the country’s entire energy sector.

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