Noboa increases neighbor’s oil transport tariff by 900%

In a new chapter in the trade war between Ecuador and Colombia the Ecuadorian president Daniel Noboa determined a 900% increase in the price of transporting Colombian oil through the Sote pipeline, in a measure that once again angered the government of Gustavo Petro.

According to the Ecuadorian government, the tariff for foreign users of the gas pipeline will increase from an approximate value of 2.5 dollars per barrel to more than 30 dollars.

The Colombian Minister of Mines and Energy, Edwin Palma, said that the new measure represents yet another aggression against the Colombian people and mainly affects small and medium-sized producers operating in the Putumayo region. According to him, these operators are vital for maintaining employment and social stability in a historically excluded region.

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In an interview today, Noboa said that the underlying conflict is not commercial, but structural. The president stated that the lack of control at the border allowed the expansion of criminal networks operating in Ecuador. “The abandonment of the border allowed the expansion of drug trafficking. This measure is in line with the national security policy to strengthen the border. The population demands action and we are acting,” he said.

Tariff and payback

The dispute between the two South American countries was sparked last week, when Ecuador imposed 30% tariffs on several Colombian products, alleging that the Colombian government was not doing enough to curb drug trafficking across the common border.

Petro’s administration responded by adopting reciprocal tariffs and also decided to suspend energy sales to the neighboring country, putting the energy security of the neighboring country at risk, which is suffering from a prolonged drought.

Currently, the trade balance is a surplus of US$849 million for Colombia, considering that the country sold US$1.529 billion to Ecuador between January and October 2025, while purchases totaled US$680 million.

Among the products that Colombia imports most from Ecuador are wooden boards, canned fish, frozen seafood, palm oil, rice, tubes and profiles, beans, cocoa, among other products.

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On the Colombian export side, the impact will be felt mainly in goods such as medicines, sugar, aviation fuels, vehicles and coffee.

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