Columbia Oil Refining Market Overview, 2030

Colombia’s oil refining sector is centrally controlled by Ecopetrol, the state-owned energy company that manages the country’s entire refining infrastructure. The refining network is concentrated around two major facilities the Barrancabermeja refinery in Santander, which is the oldest and largest refinery in the country with a capacity of around 250,000 barrels per day, and the Cartagena Refinery (Reficar), which underwent a major modernization between 2013 and 2017 and now operates at roughly 165,000 barrels per day. These refineries account for nearly all of Colombia’s domestic fuel production and are strategically aligned with upstream operations in the Llanos Basin and Magdalena Valley, regions known for their light and medium crude oil. Reficar's upgrade allowed Colombia to significantly reduce its reliance on refined product imports, improving energy sovereignty and fuel security. Both refineries are integrated into the national transport and distribution network, supplying diesel, gasoline, LPG, and jet fuel across major consumption centers. The country also produces bunker fuels for port hubs such as Cartagena and Barranquilla. Recent years have seen a growing focus on improving operational efficiency, cutting emissions, and introducing digital monitoring systems across refinery units. Regulatory institutions like the Ministry of Mines and Energy and the National Hydrocarbons Agency oversee the sector, ensuring that environmental standards are maintained while supporting industrial stability. Refining operations are increasingly influenced by national policy goals tied to energy transition and decarbonization, especially under Colombia’s commitments to reduce emissions and promote clean energy. Although Colombia’s refining system remains dependent on conventional fossil fuels, refiners have started exploring biofuel integration and alternative feedstock co-processing options in line with green energy policies introduced in the past five years.

According to the research report ""Colombia Oil Refining Market Overview, 2030,"" published by Bonafide Research, the Colombia Oil Refining market is anticipated to grow at more than 6.68% CAGR from 2025 to 2030. Colombia’s oil refining market remains steady, with consistent demand for transport fuels across its growing urban regions and logistics corridors. The country processes roughly 400,000 barrels per day across both major refineries, serving most of the domestic fuel consumption with only limited dependence on imports, primarily during maintenance shutdowns or to meet specific product specifications. The market is expected to grow supported by economic recovery, vehicle fleet growth, and rising demand for jet fuel from Bogotá, Medellín, and coastal airports. Fuel pricing is partially regulated, and subsidies on diesel and gasoline remain in place for strategic sectors, which impacts refinery profit margins and investment flows. The Cartagena refinery upgrade drastically improved product quality, sulfur reduction, and energy efficiency, enabling Colombia to produce Euro-V and near-Euro-VI compliant fuels domestically. There is also increasing demand for marine fuels from port cities like Buenaventura, driven by international shipping activities. However, environmental pressure is building through Colombia’s green energy plan, which includes mandated monitoring and reporting of refinery emissions and energy use. Ecopetrol is investing in process digitalization and environmental compliance technologies, including flare gas recovery and wastewater treatment systems. The government also encourages biofuel blending, with mandatory biodiesel and ethanol mix ratios regulated by the Ministry of Energy, although technical limitations at some refinery units constrain rapid scaling. Colombia’s refining margins are influenced by Brent-linked crude pricing and regional crack spreads, particularly for diesel, which remains the most consumed refined fuel.

Diesel remains the dominant refined fuel product in Colombia, accounting for the largest share of total consumption by volume. Its extensive use spans across multiple sectors, including transportation, agriculture, and industry, with road freight and logistics heavily reliant on diesel-powered vehicles. Gasoline demand is mostly concentrated in urban centers such as Bogotá, Medellín, and Cali, where passenger cars and motorcycles contribute to steady consumption levels. The growing urban population and rising vehicle ownership in these cities sustain gasoline use despite the gradual introduction of electric vehicles and stricter emissions standards. Jet fuel consumption supports both domestic and international air travel, centered around major airports like El Dorado International in Bogotá and José María Córdova near Medellín. This fuel type experienced some fluctuations during the COVID-19 pandemic but has since recovered with increasing air traffic and tourism activity. Asphalt plays a critical role in Colombia’s infrastructure development, especially within the government-led “4G Program” that focuses on highway construction and road rehabilitation projects nationwide. The use of asphalt has remained steady, supporting public works and urban development. Liquefied petroleum gas (LPG) is widely used in rural and mountainous regions, particularly in areas where access to natural gas pipelines is limited. LPG serves as a primary fuel for cooking and heating in these communities, supported by government programs aimed at expanding LPG availability to underserved populations. Fuel oil and lubricants maintain niche roles in industrial operations, including manufacturing and heavy machinery. Asphalt and other refinery by-products support the growing construction sector.

Fuel consumption in Colombia is heavily weighted toward the transportation sector, which consumes the majority of refined fuels. Diesel dominates this segment, powering trucks, buses, and agricultural machinery that form the backbone of Colombia’s freight and rural economy. The aviation sector has shown growth in jet fuel demand, propelled by domestic carriers expanding regional routes and international flights connecting Colombia with global hubs. Cartagena’s port and Pacific coast terminals serve as key marine bunkering points, supplying fuel to commercial shipping and coastal vessels. Industrial users depend primarily on diesel and fuel oil for power generation, process heat, and equipment operation, particularly in sectors such as mining, manufacturing, and construction. Residential and commercial LPG use is significant, particularly in mountainous and rural areas where piped natural gas infrastructure is sparse. Government subsidy programs help maintain LPG affordability and encourage its adoption as a cleaner alternative to wood or charcoal. Electricity generation’s reliance on refined fuels is limited, with most power supplied by hydropower and natural gas, though some diesel generators provide backup in remote locations. Rail transport and domestic waterways represent smaller but consistent consumers of refined products, supporting agricultural exports and regional connectivity. This sector-wise fuel demand underscores Colombia’s dependence on diesel for transport and industry, alongside growing aviation and residential LPG consumption.

Colombia’s crude oil feedstock supply is anchored by domestic production from key fields located in the Llanos Basin, Putumayo, and Middle Magdalena regions. The country produces a mix of light and medium crude oils, which feed the national refining system. Most domestic crude is processed locally, reducing reliance on imports. However, Colombia imports low volumes of crude to balance refinery feedstock slates and ensure stable product output quality. Natural gas liquids (NGLs) and alternative feedstocks have limited presence in Colombian refining, as the industry primarily relies on conventional hydrocarbon feedstocks. The country’s refining infrastructure is geared toward processing the local crude mix, with feedstock quality influencing product yields and refinery operations. The government encourages exploration and development of new fields to maintain crude production and support refinery throughput. Supply chain logistics include pipeline transport and coastal shipping to refinery sites such as Barrancabermeja and Cartagena. Refinery operators manage feedstock inputs carefully to mitigate price volatility and maintain compliance with fuel specifications. There is growing interest in potential integration of bio-feedstocks and renewable inputs, but these remain at early pilot stages. Colombia’s feedstock landscape reflects a strong emphasis on domestic crude production supplemented by selective imports to optimize refinery operation. The government continues to promote domestic exploration to maintain crude supply stability and support refining self-sufficiency, keeping Colombia relatively insulated from global crude market volatility.

Colombia’s refinery complexity features a combination of high-conversion and mid-level upgrade facilities, supporting the country’s fuel quality mandates and product slate diversity. The Cartagena refinery, operated by Ecopetrol’s Reficar unit, stands out as a modern, high-complexity conversion refinery with advanced fluid catalytic cracking (FCC) and hydrocracker units. These installations enable the refinery to produce cleaner fuels that meet stringent sulfur limits and environmental regulations. Barrancabermeja refinery, Colombia’s oldest and largest refinery, has been undergoing phased upgrades to improve conversion capacity and product quality. Recent investments have focused on installing FCC and hydrocracking units to shift away from simple topping or hydro-skimming operations toward deeper conversion processes. These upgrades aim to enhance diesel and gasoline yields, reduce sulfur content, and improve operational efficiency. The refineries’ complexity allows for maximized processing of local crude feedstock, reducing the need for imported intermediate products. Operators are also focusing on environmental upgrades, such as sulfur reduction technologies and emissions control systems, in line with global clean fuel trends. There is an increasing emphasis on local feedstock processing capacity to boost energy security and optimize refinery economics. Colombia’s refinery sector is in transition, blending legacy infrastructure modernization with investments in units to meet future fuel demand and regulatory requirements.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Oil Refining Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fule Type
• Gasoline
• Diesel/Gasoil
• Jet Fuel
• LPG
• Fuel Oil
• Others (Lubricants, Asphalt)

By Application
• Road Transportation
• Aviation
• Marine Bunker
• Petrochemical Industry
• Residential & Commercial
• Electricity Generation
• Others (Rail & Domestic Waterways, Agriculture)

By Feedstock
• Crude Oil
• Natural Gas Liquids (NGLs)
• Biomass
• Others (Coal Tar, etc.)

By Complexity Type
• Topping
• Hydro-skimming
• Conversion
• Deep Conversion
• Others Show more