Versión Español
Spanish.— Bolivia is a boiling pot of problems that could overflow at any moment. Tensions are rising in the country as the shortage of gasoline and diesel has forced six productive sectors to declare a state of emergency. Meanwhile, supporters of former President Evo Morales continue to block major roads in the nation, demanding an end to investigations against him for alleged human trafficking.
This is an absolute crisis for President Luis Arce’s government. According to El Deber, the long lines of cars, trucks, buses, motorcycles, and Bolivians with fuel cans waiting outside gas stations in 15 provinces across Santa Cruz, Cochabamba, and La Paz are worsening.
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The chaos is severe. Public transportation users report that fares and basic food prices have increased due to the fuel shortage.
The pressure on Arce’s administration grows due to the state’s failures in importing fuel, which is sold to the population at subsidized prices. Although Arce is responsible for the purchase of 86% of the diesel and 56% of the gasoline needed for the domestic market, he attributes the shortage to the protests led by Morales, which are obstructing fuel trucks from reaching central areas of the country.
Unconvincing Arguments
The president’s explanation for the long lines at gas stations lacks credibility for the Santa Cruz Fuel Suppliers Association (Asosur). According to the organization, they have been facing supply issues for six months. Asosur reports that its members have been receiving less than half of their shipments since May.
Susy Dorado, a sector representative, explained that of the 35,000 liters of gasoline they are supposed to stock, only 10,000 are being supplied, which is insufficient to meet demand. Regarding diesel, she revealed that some rural stations have not received even a single liter in over ten days.
The consequences are already predictable. Harvests are being affected, especially soybean crops, which are now spilling their grains as they reach maturity but cannot be collected in time.
In response, Jean Pierre Antelo, president of the Chamber of Industry and Commerce (Cainco) of Santa Cruz, has asked Arce for authorization to allow the free import and commercialization of fuel. He insists that “the state has not been able to provide certainty on fuel issues.”
Executive Promises
Bolivia’s state oil company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), has promised to increase the daily gasoline distribution in Santa Cruz from two million liters to three million liters. The company is also seeking support from Chile to mitigate the crisis by bringing in more than 125 tankers loaded with gasoline to restore fuel supply.
Arce will need to address the situation on Friday, November 15, during a key meeting with representatives from Anapo and the Eastern Agricultural Chamber (CAO). His government may need to acknowledge that the fuel subsidy, in place since 2004, now appears unsustainable—particularly as this year’s expense is projected to close at $1.406 billion, according to the 2024 General State Budget (PGE). Of this amount, $842 million is allocated for diesel purchases, $521 million for supplies and additives (gasoline), $22.5 million for hydrocarbon incentives, $15.5 million for LPG bottling, and $5.3 million for gas oil.
It will not be easy to convince the public of the unsustainability of maintaining prices that seem “affordable,” given the high logistical costs they entail, amid fiscal challenges, increasing inflationary pressure, social conflicts, and limited governability.
If a change is made, Bolivia may see an end to the 3.74 bolivianos per liter price, equivalent to $0.54, and with it, its title as the country with the second-cheapest gasoline in Latin America, only behind Venezuela.
