Bolivia faces worsening fuel shortages amid foreign exchange shortage

Hydrocarbon expert José Padilla warned that long queues at fuel stations are driven by a shortage of foreign currency needed to purchase imported diesel and gasoline, not by a lack of fuel or road access. He said the country is on the brink of a larger energy crisis and urged the government to open private import channels and free foreign exchange for fuel purchases.

The Bolivian government also pointed to fuel smuggling as a factor aggravating the shortage. Development Minister Óscar Mario Justiniano noted that price differentials with neighbouring countries encourage illegal diversion of subsidised fuel, harming domestic supply. He called for stronger controls by the National Hydrocarbons Agency and the armed forces, and highlighted meetings with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) on import planning.

Bolivia imports almost all of its diesel and over half of its gasoline after a collapse in local production. The lifting of road blockades has not resolved the crisis: about 50% of city buses and 70% of freight trucks remain idle awaiting fuel. In response, the government issued Supreme Decree 5644 to formalise a private fuel market and set a reference price, following the removal of long‑standing fuel subsidies that had spurred smuggling and quality problems.