YPFB legal director placed under house arrest in fuel scandal

Authorities in Bolivia are intensifying investigations into the ‘gasolina basura’ (garbage gasoline) scandal involving the state oil company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). Daniela Durán, the former legal director of YPFB, was apprehended in Santa Cruz. She faces charges of breach of duty and anti-economic conduct related to the legal review of fuel import contracts that allegedly involved low-quality gasoline, causing widespread vehicle damage.

While prosecutors initially sought 180 days of preventive detention, a judge in La Paz has ordered Durán to undergo house arrest under electronic monitoring. The investigation into the fuel quality issues, which occurred between late 2025 and early 2026, has already led to the detention of former Hydrocarbons Minister Mauricio Medinaceli.

In response to the crisis, YPFB Executive President Sebastián Daroca announced a major overhaul of the company’s internal control mechanisms. This strategy includes an interdisciplinary technical commission and a new digital reporting platform to combat corruption and irregularities within the hydrocarbon supply chain. Meanwhile, political figures have called for a more independent and thorough intervention to ensure accountability for the mismanagement of fuel imports.