Bolivia Ends YPFB Fuel Import Monopoly, Authorizes Private Market-Priced Sales Through 2030

The Bolivian government enacted Supreme Decree 5644 authorizing natural and legal persons, both public and private, to import petroleum derivatives for own consumption or commercial sale in the domestic market. The measure responds to irregular fuel supply affecting multiple regions and follows over 50 days of road blockades demanding President Rodrigo Paz’s resignation. The Heavy Cargo Transport Chamber reported 70 percent of its fleet queuing for diesel, while Santa Cruz public transport operators indicated only 50 percent of units remain operational due to diesel scarcity.

The decree establishes a bifurcated market structure where YPFB continues importing and selling fuel at regulated prices—currently 6.93 bolivianos per liter for gasoline and 9.80 bolivianos per liter for diesel—while private importers may charge market rates. Empacar Energy, already operating in Santa Cruz, sells diesel at 15.80 bolivianos per liter, indicating an approximately 61 percent premium over regulated pricing. Service stations may offer both product categories but must maintain complete separation in infrastructure, storage, volumes and pricing. The decree explicitly prohibits mixing fuels from different sources or reselling YPFB products at market prices.

To stimulate private participation, the government set the Special Tax on Hydrocarbons and Derivatives at zero bolivianos per liter for imported diesel and gasoline through December 31, 2030. The measure also reduces import tariffs on gasoline to zero percent through December 31, 2026. Implementation awaits regulatory publication by the National Hydrocarbons Agency and procedural authorization from the Ministry of Hydrocarbons and Energy, expected within 15 days.

Hydrocarbon analyst Raúl Velasquez from Fundación Jubileo noted previous attempts during the Luis Arce administration failed because private importers faced requirements to sell at subsidized prices, making operations financially unviable. The current framework eliminates this constraint. YPFB distributed adulterated gasoline in February affecting at least 70,000 vehicles, with approximately 35,000 receiving compensation by early July. New quality control protocols implemented following that incident have contributed to distribution delays.

The dual-market structure positions YPFB to serve lower-income consumers while private operators target customers prioritizing supply reliability and quality over price. Market analysts anticipate gradual migration toward private fuel as consumers adjust to differential pricing, potentially reducing YPFB’s import volumes and associated central bank foreign exchange requirements.