Bolivia’s energy decline has been precipitous. The country reached peak gas exports of $6.6 billion in 2014 during what analysts termed the “Bolivian miracle,” which drove poverty reduction from 59.6 percent in 2005 to 34.8 percent in 2018 and accumulated foreign reserves to a historic high of $15 billion. Since 2016, falling international prices, lack of investment in exploration and replacement reserves, and post-pandemic production declines shattered the energy balance. Reserves have collapsed to $3.6 billion by July 2026. Bolivia became a net energy importer in 2022, and by 2026 imports 60 percent of gasoline and 95 percent of diesel consumed domestically, according to Fundación Jubileo.
Political analyst Jorge Richter noted that despite accumulating substantial reserves, Bolivia failed to implement reinvestment policies to maintain hydrocarbon capacity. “We have exhausted the wells and the megafields are practically in their final stage,” Richter stated, adding that without improved domestic gas pricing and investment-friendly legislation, the country risks importing gas by 2028, undermining what once distinguished Bolivia as a hydrocarbon power.
Paz criticized previous administrations for failing to invest adequately over 20 years, despite Bolivia spending approximately $60 billion generated by the sector without consolidating a production-sustaining model. “It won’t rain dollars from the sky, because those dollars were spent with the gas that God gave us,” he said. The president emphasized his government is developing a new Hydrocarbon Law and Mining Law to enable investment and regional resource participation, moving away from centralized government control.
The government has already moved to eliminate fuel subsidies maintained for two decades. In December, Paz decreed the removal of subsidies, causing gasoline prices to jump from 3.79 to 6.96 bolivianos per liter and diesel from 3.72 to 9.80 bolivianos. The measure triggered prolonged protests and roadblocks exceeding 50 days in the first half of 2026, led by indigenous organizations, workers, and transport sectors, generating shortages of food and basic products. Despite campaign promises to end fuel scarcity from his first day in office, shortages have continued. Between January and July 2026, gasoline imports fell 38.6 percent and diesel imports declined 29.6 percent compared to the same 2025 period, according to the Bolivian Institute of Foreign Trade.
Transport sectors have issued ultimatums. The Confederation of Drivers convened a national emergency assembly for September, calling the government’s policies a “direct attack on people’s pockets.” Heavy transport leaders demand price freezes and warn of nationwide roadblocks and border closures if the government does not stabilize supply and halt further price increases.
This article was curated and published as part of our South American energy market coverage.
