Additionally, the government suspended the classification of diesel as a controlled substance for one year, eliminating the need for prior authorization from the General Directorate of Controlled Substances. This regulatory relaxation aims to expedite diesel imports—a critical fuel for transportation and production sectors—and remove bottlenecks caused by cumbersome customs and administrative procedures. The diesel tariff classification was also temporarily lifted from import duties to further facilitate its entry. Relevant agencies, including the National Customs Service and the National Hydrocarbons Agency, are instructed to adapt their internal processes within five working days, while the Ministry of Hydrocarbons and Energy is mandated to regulate fair access to infrastructure in the following 15 working days.
This move follows the abrogation of the previous controversial Decree 5503, which had set new fuel prices resulting in sharp consumer cost increases and triggered widespread protests spearheaded by labor and campesino unions such as the Central Obrera Boliviana (COB). The current decree maintains the fuel price increases established under Decree 5516 but seeks to balance fiscal measures with social stabilization by increasing social transfers and raising minimum wages. Simultaneously, the government is leveraging international support, including a recent $4.5 billion financing commitment from the Inter-American Development Bank, to strengthen economic stabilization efforts.
Allowing private sector participation in fuel imports represents a significant shift from the long-standing state monopoly led by Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), potentially improving supply resilience amid financial and operational constraints faced by the national oil company. The effectiveness of these emergency measures and their impact on Bolivia’s fuel market and broader economy will depend on rapid implementation and coordination among government bodies and market players amid ongoing inflationary and currency challenges.
This article was curated and published as part of our South American energy market coverage.
