According to Minister of Hydrocarbons Mauricio Medinaceli, importing crude rather than finished derivatives adds value locally, reduces dollar outflows, and expands production volumes of gasoline, diesel, liquefied petroleum gas (LPG), jet fuel, asphalt, and lubricants. YPFB currently processes around 25,000 barrels per day of its capacity exceeding 60,000 barrels daily, signaling significant unused refinery potential. Import volumes and operational parameters will be calibrated by the Committee of Production and Demand (PRODE), aligning imports with logistical capacity and demand forecasts.
To facilitate this strategy, the decree zeroes the special hydrocarbons tax (IEHD) for one year on fuels derived from imported crude, aiming to lower costs without constituting a government subsidy or additional treasury expenses. The government reinforced fuel quality assurance through activation of existing contamination protocols and transparency measures, including a public hotline for user complaints and state insurance coverage for damage claims.
Bolivia is bolstering its crude supply logistics through three strategic import nodes connected via the Arica–Sica Sica pipeline from Chile and border reception points at Pocitos and Tigüipa. Contract terms now integrate freight, oil quality, country risk, and deferred payment costs, reflecting a more comprehensive pricing model. The government also anticipates eventual private sector participation, envisioning models where private companies import crude, pay YPFB for refinement services, and distribute refined products.
The initiative not only addresses immediate supply disruptions but is poised to enhance domestic refinery utilization, stabilize the national fuel market, and potentially invigorate local industrial GDP contributions.
This article was curated and published as part of our South American energy market coverage.
