Ecuador hikes crude oil transit tariff on Colombia by 900% amid energy and security dispute

2026-01-27 - 10:13

Ecuador announced on Tuesday a sharp increase in tariffs on crude oil transported from Colombia through its pipeline network, raising the fee from $3 to $30 per barrel—a 900% hike. The move comes in direct response to Colombia’s decision to suspend electricity exports to Ecuador starting February 1, further straining relations between the neighboring South American countries. Background of Escalating Tensions The tariff adjustment affects oil shipped via the Trans-Ecuadorian System Oil Pipeline System (SOTE) and follows Ecuadorian President Daniel Noboa’s earlier announcement of a 30% tariff on products imported from Colombia, citing insufficient cooperation from Bogota in combating drug cartels and securing the shared border. Colombia has not yet issued an official response to the latest tariff increase. Dispute Over Security and Energy The two nations have been locked in a disagreement over security collaboration amid ongoing operations against transnational drug trafficking organizations. Bogota’s notice on January 23 to cut electricity exports to Ecuador next month added an energy dimension to the dispute, prompting Quito’s retaliatory measure on oil transit fees.