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Bolivia fuel crisis: New diesel prices and shortages impact industry
Bolivia is facing a critical fuel crisis characterized by widespread shortages of gasoline and diesel, leading to extensive queues at service stations in La Paz and Santa Cruz. In response, the government has promulgated Decree 5676, which introduces a variable pricing model for large consumers. Under this new regulation, diesel for large-scale industrial and agricultural users will be priced at a reference rate of Bs 18 per liter, calculated daily. However, the subsidized rate of Bs 9.80 per liter remains in effect for transport workers, small businesses, and private individuals.
The shortage has sparked significant concern among regional leaders and the agricultural sector. The Association of Municipalities of Santa Cruz (Amdecruz) and various civic leaders have expressed alarm over the potential for market speculation and the impact on food production. Former President Evo Morales warned that the increased costs could jeopardize planting and harvesting cycles, potentially leading to food insecurity.
To mitigate the supply issues, the government has authorized private companies to import diesel for the agro-industrial sector. Additionally, the Cuatro Cañadas refinery project, managed by Agroindustrial Estrella Rural del Este, SRL, is working to scale up production to 2 million liters of diesel per month to support regional productivity. Meanwhile, the Santa Cruz Governorate is exploring legal avenues to facilitate private gasoline imports to alleviate the immediate shortage.
Entities
ANH · Agencia Nacional de Hidrocarburos · Agroindustrial Estrella Rural del Este, SRL · Alere SRL · Bolivia · Cuatro Cañadas · Empacar Energy · Fundación Jubileo · Marcelo Blanco · Santa Cruz · Sebastián Daroca · YPFB
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The refinery has the capacity to produce nearly 2 million liters per month in its current state.
- [○ 1 SOURCE] The facility aims to reach a production capacity of 1 million liters per day within less than a year.
- [● 2 SOURCES] The refinery will initially process 18,867 barrels of crude oil per month.
- [● 2 SOURCES] Initial monthly production is estimated at 1.35 million liters of diesel and 900,000 liters of gasoline.
- [● 2 SOURCES] Alere SRL signed an agreement with the Bolivian government to import crude oil for fuel production in Santa Cruz.
- [○ 1 SOURCE] The Ministry of Hydrocarbons is willing to assist private companies with the necessary procedures to import fuel to Bolivia.
- [● 2 SOURCES] YPFB committed to a gradual supply of gasoline followed by diesel.
- [● 2 SOURCES] The Minister of Hydrocarbons apologized to the population for the long lines at service stations. bolpress.com
- [○ 1 SOURCE] Bolivia has maintained some of the lowest diesel and gasoline prices in the region since 2005.
- [● 2 SOURCES] The government is holding up to three daily meetings with YPFB to monitor fuel distribution.
- [○ 1 SOURCE] Fuel shortages in Bolivia are driven by declining national production, smuggling, and a lack of foreign currency.
- [○ 1 SOURCE] Empacar Energy imports non-subsidized fuel for the industrial and transport sectors in Santa Cruz. noticiaslatam.lat