LPG in Colombia

LPG in Colombia today is widely used in the preparation of meals and this segment will grow in the coming years. The most widely discussed topic during the Congress was the economic and health benefits of replacing primitive firewood fireplaces with gas stoves. The burning of biomass is today recognized by the Colombian government as a serious ecological problem, contributing to deforestation, the loss of unique natural resources and the deterioration of the health of women and children in areas inhabited by indigenous people. The government estimates that by 2050 all traditional hearths will be eliminated and replaced by LPG (42%), natural gas (29%), biogas (10%) and electric stoves (19%).

In past years, autogas has not been a serious alternative to liquid transport fuels in Colombia, primarily due to subsidies that support the production and consumption of gasoline and diesel. However, the situation changed when Gustavo Petro, a leftist candidate, educated in Europe, took office as president of the republic. As part of fiscal stabilization, the president announced the abandonment of support for the consumption of hydrocarbons and direct public funds to the development of renewable energy sources. Fuel consumption subsidies were the largest component of subsidies for fossil fuels, estimated in 2021 at COP 1.8 trillion (PLN 1 is about 1000 pesos). As a result, from autumn 2022 until today, the price of gasoline at the distributor has almost doubled to approx. 4,100 COP/l and continues to grow.

The president's policies have caused discontent among consumers, who have started looking for alternatives to liquid fuels since 2023. In 2023, 23,000 vehicles were converted to CNG, an increase of 63% compared to the previous year. However, this is only the beginning of an expected retreat from liquid fuels: in Colombia of 50 million, 7 million cars are registered, of which about 130 thousand currently use compressed natural gas, a fuel obtained locally. The largest market for passenger cars is the 8-millionth Bogota, the capital of the country lying in the Andes, at an altitude of 2600 m above sea level, in difficult terrain that requires adequate engine power. Users of CNG-converted cars, including local taxi drivers, admit that they do not always pass the test under these conditions and their operation requires frequent switching between alternative fuel sources. Autogas in the Colombian transport market is practically unknown, although the first representatives of Chinese and Turkish autogas companies appear in the country. Alejandro Martínez, President GASNOVA, sees the current situation as an opportunity for the development of the autogas market, and believes that it requires the adoption of high technical standards and the development of a friendly public policy.

Bartosz Kwiatkowski, General Director of POGP, gave a presentation during the Congress on the role of LPG in the transport mix in Poland and the European Union and good practices for stimulating the development of this market. He then spoke at a panel on the National Energy Plan and the role of liquefied gas in the government's strategy. He highlighted the role of autogas in Europe, often seen as a social fuel, which would meet the needs arising from the withdrawal of subsidies for motor gasoline. Bartosz Kwiatkowski presented good practices — including subsidy schemes for new LPG vehicles and for conversion to autogas known from the Italian market. He also discussed the most common market support solutions used in Poland and in the world. Recently, newly registered CNG-powered cars can count on exemption from turnover tax in Colombia — GASNOVA hopes to develop a similar solution also for autogas. However, the attitude of the administration could potentially prove to be a barrier to market development. The government in Bogotá fears dependence on foreign suppliers of liquefied gas, in particular the United States, due to the increase in demand and thus also the import of LPG.