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The firm explained that it had given discounts argued that tariffs on pipeline transport are too
of 6% to 21% on 13 contracts in recent weeks. It high.
also noted that it had included flexibility clauses Earlier this year, Cenit offered a 50% cut in
in nine specific contracts that cover some 80% of pipeline tariffs for May and June and said pro-
Colombia’s oil production. ducers could pay back the balance from Sep-
Cenit, which controls the tariffs, indicated tember onwards. The ACP criticised this plan,
that it had made these changes in order to saying that it would result in higher costs later
meet the needs of its customers. “The current in the year.
situation has affected the entire oil industry, Armando Zamora, president of Colom-
including producers, transporters, refiners and bia’s National Hydrocarbons Agency (ANH),
retailers,” it said in a statement. warned at the time that a tariff intervention
Private producers in Colombia have been would likely face some resistance and that the
hard-hit by falling crude oil prices and the global government was preparing for litigation.
crisis sparked by the coronavirus (COVID-19) Meanwhile, Colombia’s government in a
pandemic. statement last week said that the agreements
A private industry group, the Colombian between producers and transporters were
Petroleum Association (ACP), has repeatedly “timely and positive.” ™

VENEZUEL A
Venezuela hikes gasoline prices,

alters rules governing fuel sales

VENEZUELA’S government has made signifi- quota, he said, they will have to buy gasoline
cant changes to regulations governing gasoline at the world market price. (He did not give an
pricing and distribution. exact figure, and Petroleum Minister Tareck El
President Nicolas Maduro announced the Aissami later explained that this “international
policy shift on May 30, saying that his admin- price” would amount to VEB100,000, equivalent
istration had partially eliminated long-standing to $0.50, per litre.)
subsidies on gasoline. Venezuelan drivers have The president also indicated that the national
long been able to fill their tanks at virtually zero oil company (NOC) PdVSA would no longer
cost, but Maduro said that the country’s filling have a complete monopoly over the gasoline
stations had been ordered to start selling regular market.
gasoline at a price of VEB5,000 ($0.025) per litre Caracas has appointed “private contractors”
as of June 1. to operate 200 designated filling stations that
Consumers will only be permitted to buy will be permitted to sell premium gasoline as
up to 120 litres of fuel per month for each well as the regular variety, he said. These stations
automobile and up to 60 litres per month for will sell premium fuel at a price of VEB100,000
each motorbike, he added. If they exceed this ($0.50) per litre, he stated.

Gasoline has long been scarce in Venezuela (Photo: FEE.org)

P12 www. NEWSBASE .com Week 22 04•June•2020