Bolivia Places State Oil Company Under Temporary Supervision

The Government of Bolivia placed the state oil company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) under temporary supervision for up to 180 days to address a severe fuel supply crisis. President Rodrigo Paz issued a decree on September 3 to audit and reorganize the import and distribution chain, with a possible 90-day extension for the restructuring process.

Hydrocarbons and Energy Minister Marcelo Blanco attributed the crisis to structural failures, corruption networks, and logistical shortcomings. The government intends to radically shift the state-run model by removing YPFB from fuel marketing and retail roles—potentially transferring them to the private sector—so the company can focus exclusively on extraction, exploration, and refining. This intervention comes as Bolivia imports 95% of its diesel and 60% of its gasoline.

The move follows a recent diesel price hike from 9.80 to 18 bolivianos per liter, intended to curb smuggling. This price increase triggered road blockades by farmers and transportation groups in Santa Cruz and the Beni department, defying a state of emergency declared in June. President Paz, who took office last November, is currently negotiating a multibillion-dollar bailout with international lenders as the country faces its worst economic crisis in decades.