Illegal fuel syphoning rises in Colombia, raising damage risk to pipelines and violence against staff, security forces

On 12 November 2018, two people were injured during confrontations between criminals selling contraband fuel and members of the armed forces in Herrán, Norte de Santander. It is unclear whether the fuel was smuggled across the border from Venezuela or whether it was stolen domestically. In a similar incident, on 6 November, security forces faced a riot in Tibú, Norte de Santander after seizing a truck of stolen fuel and arresting its drivers. Another incident occurred in Tibú in October, when state security forces attempted to seize stolen fuel. In October, state oil company Ecopetrol said it had detected 1,500 illicit syphoning valves since the beginning of 2018, primarily affecting its Caño Limón–Coveñas pipeline in Arauca and Norte de Santander, and to a lesser extent its Transandino pipeline in Nariño and Putumayo and its Yumbo–Buenaventura pipeline in Valle de Cauca. The 1,277 incidents registered in 2018 to October affecting the Caño Limón–Coveñas pipeline represent a 600% increase over the 202 incidents registered in 2017. Ecopetrol spent approximately USD19 million repairing the pipeline, which has also suffered more than 70 improvised explosive device (IED) incidents by Ejército de Liberación Nacional (ELN) insurgents The company also registered 237 incidents of theft against wells, transformers, and other equipment.

Significance: Demand for domestically stolen illegal fuel has historically been low in Colombia, particularly along the Ecuadorian and Venezuelan borders where consumers have ready access to cheap subsidised petrol smuggled from either country. Much of the fuel theft and illegal refining was undertaken by drug traffickers; petrol is a precursor to making cocaine. Although cocaine production has increased substantially since 2012, it is unlikely to account for all the additional demand. This implies that a consumer market for stolen and illegal refined fuel – in addition to the existing market for smuggled fuel – is developing. Indicators of pipeline theft-related incidents increasing would include a reduction in fuel subsidies in neighbouring countries; Ecuador raised the price of 'Super Gasoline' in August, and in September Venezuela began selling gasoline (petrol) at international market prices along the border. A full closure of the border, particularly with Venezuela, would also indicate a higher likelihood of fuel being stolen domestically.