Ecuador has sharply increased tariffs on Colombian crude oil transported through its pipeline system, deepening a trade and energy dispute between the two Andean neighbours that has already disrupted electricity exports and bilateral commerce.

Ecuador said on Tuesday it had raised the tariff paid by Colombia for each barrel of oil transported through the state-owned Trans-Ecuadorian Oil Pipeline System (SOTE) by 900%, lifting the fee from $3 to $30 per barrel. The move came in response to Colombia’s decision to suspend electricity exports to Ecuador from Feb. 1, 2026.

Bogotá has yet to issue an official response to the tariff increase.

The dispute has widened beyond trade into energy cooperation and crude transportation, straining relations between the two countries amid longstanding tensions over border security and cooperation against drug trafficking.

Without explicitly referring to the trade conflict, Colombia’s Ministry of Mines and Energy last week issued a resolution suspending international electricity transactions (TIE) with Ecuador, describing the measure as a preventive step aimed at protecting Colombia’s energy sovereignty and security amid climate-related pressures on domestic supply.

Colombia is a key electricity supplier to Ecuador, particularly during periods of drought. Ecuador has faced prolonged power cuts in recent years, including in 2024 and 2025, in a country where roughly 70% of electricity generation depends on hydropower.

Colombia’s leftist President Gustavo Petro said his country had previously acted in solidarity during Ecuador’s worst drought in decades. “I hope Ecuador appreciated that when it needed us, we responded with energy,” Petro said last week.

Ecuador’s Environment and Energy Minister Inés Manzano said the crude transport tariff increase applied to Colombia’s state oil company Ecopetrol and private firms exporting oil through the SOTE. “We made a change in the tariff value,” Manzano said. “Instead of three dollars, it is now 30 dollars per barrel.”

According to Ecuadorian news outlets, the SOTE transported nearly 10,300 barrels per day of Colombian crude in November, shipped by Ecopetrol and private companies.

Manzano has also said Ecuador will impose new fees on Colombian crude transported through the Oleoducto de Crudos Pesados (OCP) pipeline, citing reciprocity following Colombia’s suspension of electricity exports.

The trade conflict began last week when Ecuadorian President Daniel Noboa, a close political ally of U.S. President Donald Trump, announced a 30% tariff on imports from Colombia, effective from February. Speaking from the World Economic Forum in Davos, Noboa said the measure was justified by what he described as insufficient cooperation from Bogotá in combating drug trafficking and organised crime along the shared border.

“We have made real efforts of cooperation with Colombia,” Noboa said in a post on social media, adding that Ecuador faces a trade deficit of more than $1 billion with its neighbour. “But while we insist on dialogue, our military continues confronting criminal groups tied to narcotrafficking on the border without cooperation.”

Colombia’s foreign ministry rejected the move as unilateral and contrary to Andean Community (CAN) trade rules, sending a formal protest note to Quito. Bogotá has proposed a high-level ministerial meeting involving foreign affairs, defence, trade and energy officials to de-escalate the dispute, though no date has been confirmed.

Colombia’s Ministry of Commerce, Industry and Tourism (MinCIT) responded by announcing a 30% tariff on 23 Ecuadorian products, which have not yet been specified, with the option to extend the measure to additional goods. Trade Minister Diana Marcela Morales Rojas said the tariff was proportional, temporary and intended to restore balance to bilateral trade.

“This levy does not constitute a sanction or a confrontational measure,” the ministry said in a statement. “It is a corrective action aimed at protecting the national productive apparatus.”

Business groups say Colombia exports mainly electricity, medicines, vehicles, cosmetics and plastics to Ecuador, while importing vegetable oils and fats, canned tuna, minerals and metals. Ecuador’s exporters federation, Fedexpor, said non-oil exports to Colombia rose 4% between January and November last year, with more than 1,130 products entering the Colombian market.

Colombia and Ecuador share a 600-kilometre border stretching from the Pacific coast to the Amazon rainforest, a region where Colombian guerrilla groups and binational criminal organisations operate, including networks involved in drug trafficking, arms smuggling and illegal mining.

Although Quito and Bogotá have both signalled willingness to engage in dialogue, the rapid escalation of tariffs and energy measures has raised concerns among exporters, energy producers and regional analysts about the risk of prolonged disruption to trade and cooperation between two of the Andean region’s closest economic partners.

Colombia and Ecuador have started exchanging trade retaliations after Ecuadorian President Daniel Noboa announced a 30% “security” tariff on imports from Colombia, escalating tensions between Andean neighbours over border security cooperation.

Noboa said the measure would take effect on Feb. 1 and would remain in place until Colombia shows “real commitment” to jointly tackle drug trafficking and illegal mining along the shared frontier. He made the announcement from Davos, where he is attending the World Economic Forum.

“We have made real efforts of cooperation with Colombia… but while we have insisted on dialogue, our military continues facing criminal groups tied to drug trafficking on the border without any cooperation,” Noboa said in a post on X, citing an annual trade deficit of more than $1 billion.

Colombia’s foreign ministry rejected the tariff in a formal protest note, calling it a unilateral decision that violates Andean Community (CAN) rules, and proposed a ministerial meeting involving foreign affairs, defence, trade and energy officials on Jan. 25 in Ipiales, Colombia’s southern border city.

The government of President Gustavo Petro also announced a 30% tariff on 20 products imported from Ecuador in response, though it has not specified the items. Diana Marcela Morales, Colombia’s Minister of Commerce, Industry and Tourism (MinCIT) said Ecuador’s exports covered by the retaliatory measure total some $250 million, and described the policy as “temporary” and “revisable.”

Fedexpor, Ecuador’s exporters federation, said non-oil exports to Colombia rose 4% between January and November 2025, and that the Colombian market receives more than 1,130 Ecuadorian export products. The top exports include wood boards, vegetable oils and fats, canned tuna, minerals and metals, and processed food products.

The dispute has also spread into the energy sector. Colombia’s Ministry of Mines and Energy said on Thursday it had suspended international electricity transactions with Ecuador, citing climate-related pressure on domestic supply and the need to prioritise national demand amid concerns over a possible new El Niño weather cycle.

Ecuador has struggled with severe droughts in recent years, triggering long power cuts in 2024 and 2025 in a country where roughly 70% of electricity generation depends on hydropower, while Colombia has supplied electricity during periods of shortage.

President Petro noted that Colombia acted in solidarity during Ecuador’s worst drought in 60 years. “I hope Ecuador has appreciated that when we were needed, we responded with energy,” Petro said on Wednesday.

Following Colombia’s electricity suspension, Ecuador announced new tariffs on transporting Colombian crude through its heavy crude pipeline system. Environment and Energy Minister Inés Manzano said the oil transport fee through the OCP pipeline would reflect “reciprocity,” without giving details.

Colombia and Ecuador share a 600-kilometre border stretching from the Pacific coast to the Amazon, where Colombian armed groups and criminal networks operate, including organisations involved in drug trafficking, arms smuggling and illegal mining. Relations between Petro and Noboa, who sit on opposite ends of the political spectrum, have frequently been strained.