The intervention does not dissolve YPFB or alter its legal status as a state enterprise. The commission holds authority to audit operations, trace fuel distribution chains, and refer irregularities to Bolivia’s Comptroller General, Public Prosecutor, and State Attorney offices. The government explicitly aims to obtain reliable data on the complete logistics chain from import to retail sale, establish proper volume allocations for service stations, and evaluate decisions that affected fuel supply.
Bolivia imports 60 percent of consumed gasoline and 95 percent of diesel, spending approximately 90 million dollars weekly on fuel purchases. Chronic shortages have generated queues lasting hours or days at service stations since 2024, with the crisis intensifying under Paz’s administration that began in November 2025. Contaminated gasoline damaged an estimated 36,000 vehicles through June 2026 after YPFB confirmed rubber and manganese residues in storage tanks.
Hydrocarbon Minister Marcelo Blanco stated the government intends to progressively remove YPFB from fuel commercialization, allowing private companies to assume distribution responsibilities while the state firm concentrates on exploration, production and refining. The administration is processing approximately 70 private sector applications for direct fuel import licenses. Government officials attribute supply failures partly to smuggling networks diverting Bolivian fuel to neighboring countries where higher prices prevail.
The fuel crisis contributed to Paz replacing his Hydrocarbon Minister in April 2026, while YPFB experienced three presidential changes in ten months. In August, the government eliminated diesel subsidies for large consumers, establishing a reference price of 18 bolivianos per liter (1.56 dollars), while maintaining subsidized rates for transporters and entities consuming less than 5,000 liters monthly. Following protests from agricultural producers, authorities expanded subsidized diesel access from 120 to 2,500 liters monthly for small farmers.
This article was curated and published as part of our South American energy market coverage.
