Decree to alleviate domestic demand for hydrocarbons

Statement from the Ministry of Hydrocarbons and Energy of Bolivia (translated from Spanish by an automated system)

Decree 5218 on direct fuel imports for own consumption was welcomed by the productive sectors, as it will guarantee a continuous supply of fuels, which in turn will reduce the amount allocated to fuel subsidies, reported the Minister of Hydrocarbons and Energy, Alejandro Gallardo.

“This measure is a direct response to the needs of our productive sectors, which will now be able to access fuel in a more efficient and timely manner,” said Minister Gallardo, who also said that the Government hopes that the volume of fuel imported by the private sector will help alleviate domestic demand and, in turn, reduce the amount of the subsidy for hydrocarbons.

The new legal framework also allows for greater flexibility in terms of import points and choice of suppliers, which will benefit companies in terms of costs and logistics.

Supreme Decree 5218, approved last Wednesday, reduces the time and bureaucratic procedures for imports. According to Minister Gallardo, previously the process involved presenting documents to a judge, which could take from 30 to 60 days. With the new regulations, companies will only have to make a sworn declaration before the National Hydrocarbons Agency (ANH), which will allow for immediate processing.

“With this measure, the productive sectors will be able to have the fuels they need in much shorter periods of time, reducing the procedures from 5 to 10 days,” said Gallardo. Another relevant change is the simplification of the requirement to present quality certificates approved by the Bolivian Institute of Standardization and Quality (IBNORCA). It will now be possible to present a legalized or digitally signed copy, accredited by national certifying entities.

Minister Gallardo highlighted that there are currently nine registered companies, mostly from the mining and agricultural sectors, that are already importing fuels under these new rules, with a capacity of 13.4 million liters per month, which is equivalent to the monthly consumption of the department of Oruro.

In addition, 50 new applications from companies are being processed to obtain YPFB's "no objection" and proceed with the procedures before the ANH and the National Directorate of Controlled Substances.