Bolivia's senate has approved a bill that would allow any individual or company to import diesel and gasoline for the next three months.
The measure was taken just days before Bolivia's presidential runoff and was described as "exceptional and transitional". The goal is to alleviate the deepening fuel crisis and ensure supply. The bill still needs to pass through the house of representatives.
The legislative move builds on a decree issued by the government in November 2024, which had authorized private entities to import fuel for domestic sale. But senators argued that the decree's bureaucratic mechanisms were no longer adequate, citing logistical hurdles and conflicts faced by importers. The new law seeks to simplify procedures.
In July, Bolivia's hydrocarbon regulatory agency ANH had granted import permits to 22 companies. Despite these efforts, fuel shortages have worsened, with long lines at retail fuel stations.
The crisis stems from Bolivia's ongoing economic downturn, which began in 2023 and has drained the country's dollar reserves, severely limiting its ability to pay for imported fuel.
Officials estimate that state-owned oil company YPFB needs around $60mn/week to meet demand, but recent disbursements have fallen short, exacerbating the shortage.
The situation has become politically charged ahead of the presidential runoff scheduled for 19 October, when centrist senator Rodrigo Paz will face conservative former president Jorge Quiroga. The election marks the first runoff in Bolivia's democratic history and follows the collapse of the ruling movement towards socialism party's dominance.
Adding to the turmoil, YPFB's president Armin Dorgathen is now facing a search and seizure warrant for alleged fuel smuggling. The Bolivian attorney general's office issued the warrant last week following a complaint from the national customs service, accusing Dorgathen of unauthorized natural gas exports that may have caused economic harm to the state. YPFB has defended the legality of the transactions, claiming they were conducted under regulatory oversight and generated $14.4mn in revenue.
