YPFB Refinación operates two facilities with combined design capacity of 63,750 barrels per day and maximum operational capacity of 56,500 barrels per day. The Gualberto Villarroel refinery in Cochabamba has 39,750 barrels per day design capacity, while the Guillermo Elder Bell refinery in Santa Cruz can process 24,000 barrels per day. However, average processing between January and July 2026 reached only 24,067 barrels per day, representing 37.8 percent of design capacity and 42.6 percent of maximum operational capacity. Daroca explained that liquid production fell approximately 42 percent between 2021 and 2026 due to declining domestic crude oil supplies, leaving Bolivia utilizing just 38 percent of its refining capacity.
The immediate implementation involves receiving one million barrels of imported crude for processing, with plans to progressively increase combined gasoline and diesel production from 5,000 to 10,000 barrels per day. Daroca stated that reaching 10,000 barrels daily production requires significant government financial effort but would generate an estimated annual benefit of 49 million dollars. The refined products will include jet fuel, kerosene, aviation gasoline, liquefied petroleum gas, lubricants, and asphalt cement.
Bolivia currently imports 60 percent of consumed gasoline and 95 percent of diesel, spending approximately 90 million dollars weekly on fuel imports. Fuel shortages have persisted since 2024, with vehicles queuing for hours or days at service stations. The situation worsened under Paz’s administration, which began in November 2025, with supply disruptions initially caused by road blockades during May and June protests, followed by persistent diesel scarcity.
Decree 5701 authorizes refineries to sell derivatives at market prices to wholesale distributors, large consumers, direct clients, and service stations without subsidy application. The legislation establishes zero bolivianos per liter for the Special Tax on Hydrocarbons and Derivatives (IEHD) until December 31, 2030. The government previously removed diesel subsidies for large consumers on August 17, setting a reference price of 18 bolivianos (1.46 dollars) per liter, while public and private transporters with minimal consumption and small agricultural producers pay 9.80 bolivianos (0.79 dollars).
This article was curated and published as part of our South American energy market coverage.
