Bolivia's fuel supply plan aims to generate US$250mn in savings through 2025

This Ministry of Hydrocarbons and Energy release was published using machine translation.

The national government designed a fuel supply plan that diversifies sources and improves logistics, allowing savings of around $150 million in the first year. Logistics costs are expected to be reduced by approximately $250 million through 2025.

The information was provided by the Minister of Hydrocarbons and Energy, Franklin Molina, in an informative meeting held at the Plurinational Legislative Assembly. “We have developed mechanisms to manage the supply of fuel, which until 2021 depended on two or three suppliers, such as Vitol and Tranfigura, who supplied more than 85% of diesel and gasoline,” he said.

He explained that during the current administration, suppliers diversified, incorporating Asian and European companies. In addition, work was done on supply mechanisms, especially given the increase in logistics costs during 2022 and part of 2023.

Another important element that Molina referred to is the import of crude oil. Bolivia does not produce it, but its production was encouraged, he said. However, the authority clarified that it will not be enough for the coming years. For this reason, in 2021 a decree was issued for YPFB to import crude oil, increasing refining capacity and improving the supply of lubricants and oils crucial for the productive sector.

Likewise, the authority pointed out that YPFB carried out the distribution of fuel in a complex context, with an induced external effect that impacts the country's economy. YPFB is affected by the availability of dollars, which complicates the ability to make quick payments and have fuel in a timely manner.

I reiterate that the country is in a complex situation, aggravated by political factors, a scenario in which some political forces try to take advantage of this situation, seeking candidates or declaring that the economy has failed, which further complicates the picture.