The shortage directly impacted transport operations, with Santa Cruz public transport running at 50 percent capacity and the heavy cargo chamber reporting 70 percent of trucks stranded at fuel stations in July. International transport operators reduced operations by 60 percent, creating contract breaches and export delays to Pacific ports. Agricultural producers reported the crisis disrupted harvest activities and machinery transport during critical production periods, raising food security concerns.
Transport sector representatives alleged fuel diversion to gold mining zones where diesel sells for Bs 25 to Bs 30 per liter, substantially above official prices. Álvaro Ayllón, president of La Paz’s Transport Chamber, questioned whether the National Hydrocarbons Agency adequately controls such diversions. Agricultural producers documented cases where registered users authorized to purchase 120 liters received only 20 liters after waiting two days, suggesting rationing practices at distribution points.
Hydrocarbon production declines compounded import dependence, creating what Rodriguez characterized as a vicious cycle where reduced gas exports generate fewer dollars while lower liquid production increases import requirements. Bolivia now runs an energy deficit exceeding $1 billion annually as imports surpass exports. President Rodrigo Paz’s administration eliminated fuel subsidies maintained for over 20 years in November 2025 and issued Decree 5644 authorizing private fuel imports with reference pricing. However, Hydrocarbon Minister Marcelo Blanco declined to establish normalization timelines in July, stating he lacks “a crystal ball” to predict resolution. Analysts predict conditions will worsen without structural reforms including IMF engagement, state enterprise closures, and bureaucracy reductions.
This article was curated and published as part of our South American energy market coverage.
