Colombia to Settle $1.6B Fuel Fund Debt to Ecopetrol in Two-Part Payment

Event summary

  • Colombia will pay COP 1.6 trillion ($340M) in outstanding Fuel Price Stabilization Fund (FEPC) debt to Ecopetrol and Refinería de Cartagena.
  • Payment structure: COP 2.9B in cash on April 1, 2026, and COP 1.56T in Treasury Securities (TES) on December 15, 2026.
  • Ecopetrol's share: COP 1.2T ($252M); Refinería de Cartagena's share: COP 400B ($85M).
  • Government acknowledges time-value cost of delayed payment.
  • Agreement follows March 31, 2026 resolutions from Colombia's Hydrocarbons Directorate.

The big picture

This settlement resolves a significant outstanding liability between Ecopetrol and the Colombian government, reflecting ongoing challenges in managing fuel price stabilization funds. The two-part payment structure—combining immediate cash with longer-term securities—highlights fiscal constraints while preserving Ecopetrol's liquidity. The deal underscores the strategic importance of state-owned enterprises in Colombia's energy sector, where government relations and regulatory frameworks directly shape financial outcomes.

What we're watching

Debt Servicing Capacity
Whether Colombia can maintain scheduled TES payments amid potential fiscal pressures.
Market Impact
How Ecopetrol's cash flow and balance sheet will be affected by the delayed payment structure.
Policy Continuity
The pace at which Colombia resolves remaining FEPC obligations and stabilizes fuel pricing mechanisms.

Related topics

Oil & Gas