Bolivia fuel crisis triggers road blockades and market reform proposals

fuel crisis diesel shortages road blockades subsidies Bolivia economy

Bolivia is facing a significant fuel crisis characterized by diesel and gasoline shortages, leading to intensified road blockades in the Santa Cruz department. Agricultural producers in municipalities such as Yapacaní, San Julián, Cuatro Cañadas, and Villa Paraíso have reinforced blockades on major routes, including the Santa Cruz–Cochabamba highway, to demand government action.

Protesters are specifically targeting Supreme Decree 5676, which established a reference price of Bs 18 per liter for large consumers. While Supreme Decree 5698 was recently approved to allow small producers to purchase up to 2,500 liters of diesel per month at Bs 9.80 per liter, many producers argue this does not resolve the underlying crisis.

In response to the instability, Santa Cruz Governor Juan Pablo Velasco has proposed transitioning to an open market model. He suggests that YPFB should cease importing and marketing subsidized fuels, allowing private operators to compete at real market prices, which could reach approximately Bs 16.50 per liter. Velasco argues that the current system of widespread subsidies fosters scarcity, smuggling, and parallel markets.

Simultaneously, the Movimiento Cívico Nacional has attributed the crisis to a lack of financial resources within the government and YPFB. Meanwhile, the national government, led by President Rodrigo Paz, has proposed eliminating hydrocarbon subsidies entirely to redirect funds toward public works, noting that the subsidies currently cost the state approximately $180 million per month.

Entities

Agustín Zambrana · Bolivia · Comité Cívico Pro Santa Cruz · Comité pro Santa Cruz · Fundación Milenio · Juan Pablo Velasco · Movimiento Cívico Nacional · Rodrigo Paz · Santa Cruz · Stello Cochamanidis · YPFB

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] Supreme Decree 5676 removes diesel subsidies for large consumers, raising the price to Bs. 18 per liter.
[○ 1 SOURCE] The price of diesel for citizens and public transport remains at Bs. 9.80 per liter.
[○ 1 SOURCE] Governor Velasco expects to announce measures to resolve diesel and gasoline shortages in Santa Cruz during September.
[○ 1 SOURCE] The Comité pro Santa Cruz is reviewing progress on 10 points previously agreed upon with YPFB regarding fuel distribution. eju.tv
[● 4 SOURCES] Agricultural producers have established road blockades in Yapacaní, San Julián, Cuatro Cañadas, and Villa Paraíso. nuevapresencia.com · publiagro.com.bo · monteronoticias.com
[DISPUTED] Producers criticize the 120-liter monthly limit of subsidized diesel.
[● 2 SOURCES] The Bolivian Police have deployed anti-riot units to address the blockades.
[● 2 SOURCES] Blockades are occurring despite a national state of exception.
[● 3 SOURCES] Producers claim the fuel policy threatens winter harvests of sunflower and sorghum.
[○ 1 SOURCE] Agustín Zambrana of the Pro Santa Cruz Civic Committee stated that the central government's hydrocarbon and energy strategy has collapsed. asuntoscentrales.com
[DISPUTED] Supreme Decree 5698 allows small producers to purchase up to 2,500 liters of diesel per month at Bs 9.80 per liter. monteronoticias.com
[○ 1 SOURCE] The Movimiento Cívico Nacional attributed the fuel crisis to a lack of financial resources within the government and YPFB. lapatria.bo