March 12, 2025
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Bolivia’s Fuel Crisis Reaches Breaking Point: Find Out Why!

Bolivia’s Fuel Crisis Reaches Breaking Point: Find Out Why!

As the scorching sun beats down on the fertile lands of Santa Cruz, Bolivia, a crisis is brewing. The department finds itself in the throes of a severe diesel shortage, plunging the agricultural industry into chaos during the critical harvest season. Farmers in towns like Concepción and Yapacaní have taken to the streets, blocking highways and voicing their demands for fuel essential to their summer crop harvests of soybeans, corn, and rice. These blockades have not only disrupted trade routes but have also sparked warnings of further unrest in neighboring regions like San Carlos and Portachuelo.

Amidst this turmoil, the state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) has come under fire for its role in exacerbating the fuel scarcity. Public transport services are also feeling the pinch, operating at a meager 35-50% capacity. Operators have issued ultimatums to the government, demanding urgent dialogue and threatening to escalate their protests into a full-blown strike if their demands remain unmet. The ripple effects of this crisis are far-reaching, affecting international transport contracts and causing significant economic losses.

Hydrocarbons Minister Alejandro Gallardo has acknowledged the challenges faced in importing fuel, citing foreign currency shortages as a major hurdle. To mitigate the crisis, Gallardo has proposed selling diesel at international prices to key sectors like agriculture. However, the Multisectoral Committee, represented by Klaus Frerking from the Agricultural Chamber of the East (CAO), has raised concerns about the potential repercussions of such a move. Frerking warns that this could lead to increased costs throughout the supply chain, ultimately pushing up food prices and jeopardizing food security.

In a bid to find a solution, key players in Bolivian transport are calling for the deregulation of fuel imports and commercialization. Leaders like Bismark Daza from the November 16 Transport Federation have highlighted the dire situation on the ground, with urban, intermunicipal, and interdepartmental transport services all facing operational challenges. Daza paints a grim picture of empty fuel pumps across the department, impacting not just transport but also the livelihoods of farmers and producers in 56 municipalities.

Amid mounting pressure, Daza emphasizes the need for urgent intervention from the authorities before the situation spirals out of control. The stakes are high, with contracts being lost, and the economy teetering on the brink. Frerking echoes these sentiments, stressing the critical need for timely diesel deliveries to sustain the economy. He warns of impending price hikes across the board, spelling trouble for consumers and businesses alike.

As Santa Cruz braces itself for the impending harvest season, the call for action grows louder. The demand to eliminate diesel and gasoline from the list of controlled substances rings clear, a plea to stem corruption and extortion in the supply chain. The time for decisive action is now, for the fate of Bolivia’s agricultural heartland hangs in the balance, teetering between prosperity and peril.

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