The liquid fuels industry in Colombia

How could government intervention in the liquid fuels industry be improved?

Project details

  • Client

    Asociación Colombiana del Petróleo (ACP) though Universidad de los Andes.
  • Services

    Inventory and analysys of government intervention in the Colombian the liquid fuels‘ industry to propose a route for deregulation.

  • Team in charge

    Carlos Caballero

    Marcela Meléndez

    Ricardo Paredes

  • Year

    La industria de combustibles líquidos en Colombia
  • Categories

Downloadable

Project summary

The Colombian liquid fuels industry is subject to high levels of government intervention. This is not necessarily wrong: in some contexts government intervention can be desirable and necessary to bring markets closer to more efficient outcomes. However, occasionally government intervention -even with the best intentions- introduces distorsions to markets more costly than those it wants to solve. Analysing the rational for intervention in a particular industry is a first step towards adjusting what may be improved, removing interventions that are costly for society and identifying areas in which intervention is insufficient. This type of analysis should be done periodically to ensure thar the cost-benefit relationship of public intervention is positive in the changing context of industry.

The purpose of this study was to advance in that direction, through a careful analysis of the rational of government interventions affecting the Colombian liquid fuels industry.

Highlights

  • Product: Consulting report.
  • Presentations: Asociación Colombiana del Petróleo (ACP), various presentations in 2012 y 2013. Vice Minister of de Energy, 2013. Minister of Energy and Mining, 2014.