Bolivia intervenes in state oil company YPFB amid severe fuel crisis

A government decree, issued on Tuesday, mandates an "extraordinary, transparent and temporary" takeover of YPFB for up to 180 days to safeguard state interests and evaluate current fuel import and distribution methods. The president's office stated that this action aims to "restore efficiency, strengthen fuel supply and bring transparency to the logistics chain." Hydrocarbons Minister Marcelo Blanco acknowledged that previous measures were ineffective and attributed the fuel shortage to "logistical shortcomings in YPFB’s import and distribution."

The Ministry of Hydrocarbons also plans to gradually remove YPFB from fuel marketing to allow it to concentrate on extraction, exploration, and refining. Last week, the government increased diesel prices from 9.80 bolivianos to 18 bolivianos per liter to combat fuel smuggling, which it claims exacerbates shortages. This decision led to farmers blocking roads in Beni and Santa Cruz.

President Rodrigo Paz, who took office last November, declared a state of emergency in June to counter protests against his administration. His economic policies, including the removal of fuel subsidies in December, have been met with some unpopularity and have not resolved the fuel queues. Paz is currently negotiating with international lenders for a multi-