Bolivia releases the import and sale of fuel after demand from sectors affected by the energy crisis

Service station in Bolivia, 2024. REUTERS/Ipa Ibanez

In the midst of the energy crisis that Bolivia is going through and that has worsened in recent weeks, The Government of Luis Arce authorized the private import of fuel and its commercialization, a demand that had been raised by productive and business sectors, affected by the shortage.

“This decree aims to exceptionally authorize private actors, both natural and legal persons, to “import fuels for marketing in the domestic market, establishing the corresponding requirements and prohibitions.”he pointed out Alejandro Gallardo, Minister of Hydrocarbonsat a press conference. The official added that this measure will be in effect for one year.

Through the Supreme Decree 5271 issued this November 14, The Government loses the monopoly on the marketing of gasoline and diesel, two products that are subsidized by the State and that generate one of the largest public expenses.

Germán Jiménez, director of the National Hydrocarbons Agency (ANH)reported that the sale price will be established after an analysis with the Ministry of Hydrocarbons. However, since it is not subsidized with public resources, it is understood that Its cost can double the current onesaccording to the international price of fuels.

In Bolivia the liter of special gasoline (3.72 bolivianos) and diesel (3.74 bolivianos) is equivalent to 0.53 dollars.

A person waits sitting on his bus to refuel, on October 22, 2024 in Santa Cruz. REUTERS/Ipa Ibanez
A person waits sitting on his bus to refuel, on October 22, 2024 in Santa Cruz. REUTERS/Ipa Ibanez

For more than a year Bolivia has faced periods of diesel shortage, but it was never as acute and prolonged as now, plus the lack of gasoline was addedwhich generated endless lines of vehicles in front of service stations throughout the country.

The Government has short and long term justifications for this problem. On the one hand, they believe that there was poor management of hydrocarbons during the Government of Evo Morales (2006-2019) which caused the debacle of the oil industry and the current low production; On the other hand, they maintain that the shortage in recent days is due to the blockades carried out by Morales followers that paralyzed a part of the country and altered distribution logistics, but which were lifted more than a week ago.

Until now, the mechanisms had been facilitatedos for the private import of fuels for own consumptionbut marketing was prohibited.

The new decree does not imply that Yacimientos Petrolófilos Fiscales Bolivianos (YPFB) will stop selling fuel nor that the Government’s subsidy policy be paralyzed. “The people will always be our priority and with this new regulation we seek to guarantee that all sectors have access to the fuel necessary for their operation,” Gallardo said.

Alejandro Gallardo was inaugurated on August 12, 2024, in the midst of the country's energy crisis. (AP Photo/Juan Karita)
Alejandro Gallardo was inaugurated on August 12, 2024, in the midst of the country’s energy crisis. (AP Photo/Juan Karita)

The new provision was celebrated by the sectors most affected by the shortage and by more liberal political leaders, such as Luis Fernando Camacho, the elected governor of Santa Cruz, who sees in the decree the end of what he considers a “socialist model”.

“The government threw in the towel, the economic crisis and the fuel crisis ended up burying the failed socialist model of massism. The impoverishing statism to which Luis Arce and Evo Morales subjected us, for almost 20 years, has just received its death certificate“Camacho expressed through social networks from the Chonchocoro prison (El Alto) where he has been held for almost two years.

While the procedures are established and the sale of fuel by private parties takes place, Bolivians hope that Increase the supply of gasoline and diesel to return to normality. Although there is a greater flow than in previous days, the supply is still not regular.

President Arce asked the population for “patience” and set a deadline of ten days, which is November 23, for the matter to be resolved. However, some analysts consider that the problem is structural – due to low local production and growing import difficulties due to lack of dollars – so they have not yet seen a definitive solution.

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