HomeNewsBriefA Quarter of Gasoline Sold in Colombia Is Used for Cocaine
BRIEF

A Quarter of Gasoline Sold in Colombia Is Used for Cocaine

COCA / 3 JUN 2019 BY LARA LOAIZA EN

Rural gas stations in Colombia are allegedly selling vast quantities of fuel to criminal groups to be used in coca paste processing, with as much as 28 percent of the country's gasoline potentially going to organized crime.

The Attorney General’s Office announced it is investigating 33 gas stations in areas known for the production of coca paste after the sales reported by these stations were shown to be suspiciously high for local demand.

Since the announcement, the government has mulled issuing a resolution that would increase regulations on these establishments and help to prevent irregular sales of gasoline.

SEE ALSO: Colombia News and Profile

One gas station in Riosucio, in the department of Chocó, reported sales of 1.2 million gallons of fuel in a town whose population is only 20,000. The gas stations under investigation are all located far away from major urban centers and many are in areas with no paved roads -- the same settings where armed actors and coca crops are present.

The Attorney General’s Office is also investigating money laundering and embezzlement of state funds involving these gas stations. Gas stations located in remote, rural areas are eligible to receive tax relief and exemption from tariffs. Twelve of the 33 stations under investigation are eligible to receive the subsidies, which amount to about 1,476 million pesos (approximately US$450 million) per year.

Allegations that criminal groups are buying up fuel are not new. Last February, authorities declared some 1,000 gas stations to be involved in such sales. Of the 250 million gallons of gasoline sold in Colombia in 2018, as much as 70 million, or 28 percent, went to the production of cocaine, authorities said.

InSight Crime Analysis

The illegal sale of fuel for the processing of coca leaves in Colombia has been a persistent issue. Authorities have tried to crack down on the practice, but their efforts are increasingly made more difficult as cocaine production in Colombia continues to reach record highs.

Of the 5,439 gasloline stations in the country, 1,249 are located in the municipalities with high coca cultivation. The southwestern department of Nariño has seen 302 gas stations opened in the last two years, according to the Ministry of Mines and Energy, with five of the new targets being located there.

Additionally, in border departments such as Norte de Santander and Nariño, state subsidies of gasoline may well be financing coca production.

SEE ALSO: New Criminal Group Runs Fuel Smuggling at Colombia-Venezuela Border

The rise of fuel smuggling from Venezuela has also put a dent in the fuel sales at local stations, such as those in Norte de Santander, a smuggling hub. Much of the contraband fuel from Venezuela is also destined for coca paste processing.

But Colombia’s new strategy to combat this practice shows promise. The use of more complete data sets tracking atypical sales at gas stations was what flagged these  transgressors. Likewise, the government responded quickly with new regulations, showing that they are taking the problem seriously. Nonetheless, only a small percentage of gas stations profiting from the illegal sale of fuel have been identified so far.

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Tags

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

COCA / 12 JUL 2022

The historic publication of the Final Report from Colombia’s Truth Commission has crystallized the core issues that president-elect Gustavo Petro…

COLOMBIA / 17 DEC 2021

A lucrative covert delivery business run by prison guards in Colombia has provided yet another example of the diverse range…

COLOMBIA / 19 NOV 2021

A surge in US-bound migrants has been a boon to human smuggling rings in Ecuador – in a pattern that…

About InSight Crime

THE ORGANIZATION

All Eyes on Ecuador

2 JUN 2023

Our coverage of organized crime in Ecuador continues to be a valuable resource for international and local news outlets. Internationally, Reuters cited our 2022 Homicide Round-Up,…

WORK WITH US

Open Position: Social Media and Engagement Strategist

27 MAY 2023

InSight Crime is looking for a Social Media and Engagement Strategist who will be focused on maintaining and improving InSight Crime’s reputation and interaction with its audiences through publishing activities…

THE ORGANIZATION

Venezuela Coverage Receives Great Reception

27 MAY 2023

Several of InSight Crime’s most recent articles about Venezuela have been well received by regional media. Our article on Venezuela’s colectivos expanding beyond their political role to control access to…

THE ORGANIZATION

InSight Crime's Chemical Precursor Report Continues

19 MAY 2023

For the second week in a row, our investigation into the flow of precursor chemicals for the manufacture of synthetic drugs in Mexico has been cited by multiple regional media…

THE ORGANIZATION

InSight Crime’s Chemical Precursor Report Widely Cited

THE ORGANIZATION / 12 MAY 2023

We are proud to see that our recently published investigation into the supply chain of chemical precursors feeding Mexico’s synthetic drug production has been warmly received.