Water shortages and fuel smuggling in Bolivia

Bolivian municipalities are experiencing significant water scarcity and economic strain driven by drought and changes to fuel policy. In the Chuquisaca department, natural water sources have dried up, forcing at least 13 rural municipalities to rely on expensive water transport via trucks. This logistical burden has been exacerbated by the removal of diesel subsidies under Supreme Decree 5716, which increased fuel prices and strained municipal budgets for public works. In the Cochabamba metropolitan area, shortages in southern districts like Villa Pagador and Uspha Uspha led the municipal government and the Municipal Service of Drinking Water and Sewerage (SEMAPA) to implement a contingency plan. Following a strike by private tanker drivers protesting Municipal Law No. 1927, the city has begun distributing free water via municipal tankers and has established eight strategic municipal loading points to lower costs and prevent illegal practices. Parallel to the water crisis, authorities are intensifying efforts to combat fuel smuggling. The National Hydrocarbons Agency (ANH) and YPFB have conducted operations to prevent the diversion of subsidized fuels to the black market. Recent actions include the seizure of 13,000 liters of gasoline in Sucre, resulting in two arrests, and the confiscation of 300 LPG cylinders and 250 liters of liquid fuel in El Alto. In Potosí, the Municipal Council has approved Law 578, declaring a water emergency due to drought. This law authorizes a budget exceeding 7.5 million bolivianos for drilling wells, rehabilitating sources, and constructing storage tanks. Concurrently, the Potosí Mayor’s Office is joining a criminal complaint regarding the alleged illegal extraction and sale of water from the Chaluma lagoons. Reports indicate that 20,000-liter cisterns were being sold for 1,000 to 1,200 bolivianos, allegedly to supply private businesses and mining operations.