Colombia Gas Prices Surge 19% Amid Middle East Conflict and Import Costs

The price of vehicular natural gas (GNV) in Colombia has risen by 19%, reaching $5,000 per cubic meter, driven by escalating international costs linked to the conflict in the Middle East. This sharp increase significantly impacts taxi drivers and transport operators, who now face higher fueling expenses as domestic supply struggles to meet demand.

The Cost Disparity

The core issue lies in the widening gap between locally produced and imported gas. According to former Minister of Mines and Energy Amylkar Acosta, domestic gas costs between US$10 and US$12 per million BTU. In contrast, imported gas prices have nearly tripled from US$13 in February to approximately US$30 currently. Since December 2024, imports have accounted for 40% of GNV supply to cover essential demand, making the country increasingly vulnerable to global market fluctuations Source: La República.

Geopolitical Triggers

Acosta attributes this price spiral to the war in the Middle East, which has kept the Strait of Hormuz closed and disrupted transportation. A critical factor is the damage to liquefaction facilities in Qatar, the world’s largest gas producer. Specifically, attacks on the Ras Laffan complex have caused severe disruptions. Qatari authorities estimate that repairs will take between 3 and 5 years, prolonging the supply shock Source: El Colombiano.

Future Outlook

With limited capacity to absorb these variations without increasing local production, Acosta warns that there is little short-term relief for consumers. He expects the upward trend in international gas prices to continue impacting internal Colombian prices. While over 700,000 vehicles are adapted for GNV, only about 2.4% of the automotive fleet currently uses it. However, because GNV shares supply with households and industry, the broader economic impact extends beyond just transport sectors Source: La República.