Sector: LPG

Colombia decrees autogas

Everybody wants to switch from petrol to autogas these days. Next up is Colombia, where the fuel is set to become widely available by the end of 2017. It seems that South America will no longer be dominated by CNG and ethanol when it comes to alternative fuels...

The government issued a decree a long time ago promoting the Autogas National Development Plan, where it describes how to implement this new alternative energy in the country. In this decree, the government gave the Ministry of Mining and Energy a year to issue the measures that must be applied to the business, in relation with regulation and safety.

Oscar Muñoz, member of the Colombian Energy and Gas Regulatory Commission (CREG)

Traffic in a Colombian city© auto-gas.netDrivers of some of these are eager to switch to LPG. Have a little more patience - help is on the way!

Apparently, it isn't always the case that autogas market is born from drivers' natural desire to reduce their fuel spendings, with appropriate legal regulations following later. This time the government is taking the first step by decreeing development of the LPG-as-motor-fuel sector. Everything should be ready in late 2017 or early 2018. No matter the means if they serve the same end!

It's not that LPG is non-existent in Colombia altogether – the fuel is used for heating and cooking, so there's a whole infrastructure for bottle filling and distribution. The bottle sector will become the basis for the future autogas sector and inquiries from companies willing to expand their business into the new territory are being reviewed at the moment. And there are many, since now import of LPG is monopolised and strictly regulated. Once autogas is launched, the rules could become much more lenient, with no limits on import or storage.

Today, drivers looking for economical gaseous fuels in Colombia only have CNG at their disposal. However, once LPG autogas arrives in the country, drivers and distributors alike could turn away from compressed methane, since LPG is expected to be cheaper – both in terms of conversion and retail price of the fuel itself. On top of that, setting up refueling infrastructure is simpler and cheaper for autogas. We see a bright future for LPG as motor fuel in Colombia and be sure we'll report all developments in the field as they come.


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Robert Markowski
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