A growing regional presence and value offering

January 2, 2025

Juan José Martínez, president of Primax Colombia, talks to The Energy Year about the milestones the company has achieved in Colombia; its products, biofuel programme and loyalty programme; and its use of photovoltaic self-generation. Primax Colombia is a fuel retailer with more than 970 service stations.

What milestones has Primax achieved since it entered the Colombian Market?
We started Primax in 2018, following the sale of ExxonMobil’s downstream assets in the country. We started with a chain of about 740 service stations back then, and by the end of 2024, we expect to reach 1,000 service stations. This places us as the third-largest company in terms of the number of retail stations in the country. This amounts to more than a 15% market share
The last five years have been challenging. The first objective we had was to rebrand those 740 stations to the Primax brand, which required a coordinated effort to ensure that the design was the same as the stations that had been launched in Peru and Ecuador.
From a technology point of view, 100% of our systems and technology depended on dealers. Over these years we have developed our own programmes to get data from the end consumers, so we can better understand their needs. We are currently working to fully implement these systems.
In 2024, we launched five pilot stores under the Listo brand. We have already implemented these stores in Peru and Ecuador, and they have been very successful. We want to move forwards with this concept of a store, but we want to do it well, with clear steps. The first one is getting to know our consumer through these pilots.

Tell us about the benefits of the products you bring to the market and your biofuel programme.
Ecopetrol is the national company that supplies fuel to everyone, both wholesalers and retailers. From here, one differentiates oneself with innovative products through additives. We have top-tier products, such as Max Pro Diesel, which reduces CO2 emissions by 25% and provides better engine performance. Other products include Extra G-Prix, which boasts up to a 98 octane rating.
In addition to this, we have launched a biofuels programme called B20. The country’s current blend stands at 10% for both ethanol and diesel. With the B20 programme, Primax is the only wholesaler in Colombia to supply B20, which is a 20% biofuel blend. We have rolled out the programme in Bogotá, Medellín and Chía, supplying the product to 1,200 ageing heavy trucks.
The programme is eliminating more than 8,000 tonnes of CO2 equivalent yearly, which is a 19% reduction in emissions from these trucks. We are implementing this programme with the support of the Ministry of Mines and Energy. We receive the raw material from BioD, among other suppliers.
The challenge, however, is the product’s price. The truck driver’s fuel cost increases. If a government policy could help these programmes become more widespread, accepted and used by consumers, we could have a great effect on air quality, especially in the major cities. However, since fuel represents between 50-60% of the costs for transporters, if you don’t have an economic incentive for biofuel, it will be difficult to have them sign up.
The country should consider the benefits beyond the use of biofuels and alcohol in petrol. Foremostly, we would be generating jobs in the countryside. At the moment, the sugar cane sector generates more than 250,000 jobs in Colombia, while the palm sector generates around 200,000. Promoting biofuels would benefit Colombia’s agroindustry. In turn, reductions in CO2 and greenhouse gas emissions would be achieved.

What loyalty programmes is Primax introducing, and how is it using data to better understand client needs?
Our strategic partner for loyalty schemes is Puntos Colombia, owned by Banco de Colombia and Grupo Éxito. By understanding key information of our customers, such as the frequency at which they come to our stations, we can attract them through different strategies. We have designed points programmes for this, and we’re making a lot of progress on this front.
We are also working with our dealers to directly obtain customer information. The challenge is that we are talking with almost 1,000 service stations, and each one of them has different technology operators.
Dealers that have joined this programme are starting to see the number of customers that are coming to them, transaction volumes, how often the customer arrives, which salesperson is the one that offers the most promotions, which one brings in the most volume, etc. This information is very valuable.
Once we expand this scheme, we will use artificial intelligence algorithms to see how to start adding value for the dealer. Although we are not yet where we want to be in terms of technology, we have made significant progress in data capture.
The data from the pilots is already centralised. We need to prove the efficacy of the system, and then we’ll start bringing in some additional service stations. Our target for 2024 is to have 100 stations connected.
Lastly, the Primax Card is another product we offer alongside our loyalty programmes. It is a reloadable prepaid card that allows users, companies and individuals to have greater control over their fuel expenses and access various benefits. The card can be purchased and reloaded through PSE [secure electronic payment] or at over 200 strategically located service stations across the country.

In what ways has Primax reduced energy consumption by betting on PV self-generation?
Self-generation is being applied at fuel terminals. We have 11 terminals in the country, and their energy consumption is quite high.
In 2023, we launched the “Proyecto de Autogeneración Eléctrica” with our partners by installing solar panels at four terminals: Bogotá, Cartagena, Galapa and Mancilla. We installed 1,200 solar panels, which will help us save around 40% on energy and reduce our CO2 emissions by over 1,300 tonnes over the next 15 years. That’s equivalent to planting 8,000 trees.
This year we are expanding this PV scheme to another four terminals. We aimed to have almost 75% of energy consumption at our terminals covered by our panels by the end of 2024. We intend to cover 100% in 2025. Total investment in this solar programme for the four terminals is over USD 1 million. We are looking at a similar investment for the four new terminals.
At the same time, we want to start pilots by installing solar panels at some of our service stations. The dealer decides whether he wants to do it or not. We are establishing a scheme to offer them the possibility.

Considering the solid position Primax has in Colombia, what further growth is the company considering?
Around 40% of the product sold in Colombia passes through our terminals. In terms of capacity between all our 11 terminals, we have a combined capacity of around 90,000 barrels. In terms of gallons sold to the market, retail and B2B [business to business], we have around a 22% market share.
Moving forwards, we are looking at organic growth, but we are open to any inorganic opportunities that can add value to our operations. We will continue on a growth path in the retail business. This will be done by developing a presence in regions we are not in today.
Our coverage is quite limited in certain border areas and remote departments, and we have an opportunity to compete and expand into these regions. And we definitely want to strengthen the network along all the roads of Colombia and in all the cargo corridors.
Secondly, we will position our convenience stores in the country, with significant recognition and a differentiation in terms of value offered to the consumer. A third point, but no less important, is to continue consolidating sales through our partners in the aviation and marine markets.

Read our latest insights on: