BOLIVIA PLACES STATE OIL FIRM UNDER TEMPORARY SUPERVISION AMID FUEL CRISIS

The Bolivian government has placed state-owned oil company YPFB under temporary supervision following severe fuel shortages and growing concerns over the company’s import and distribution operations.

A government decree said the intervention, which could last up to 180 days, is aimed at protecting state interests while reviewing how fuel is imported and distributed across the country.

Hydrocarbons Minister Marcelo Blanco said existing measures had failed to resolve the crisis, blaming logistical problems within YPFB’s fuel import and distribution processes.

The government also plans to gradually remove YPFB from fuel marketing, allowing the company to concentrate on oil exploration, extraction and refining.

The move comes after diesel prices were increased from 9.80 bolivianos to 18 bolivianos per litre in an effort to reduce fuel smuggling, which the government says has worsened shortages.

The price increase has triggered protests, with farmers blocking roads in Beni and Santa Cruz. The unrest came despite a state of emergency declared by President Rodrigo Paz in June.

Paz, who took office last November, has faced growing criticism over economic reforms, including the removal of fuel subsidies, which caused prices to rise sharply without ending long queues at petrol stations.

The government is currently negotiating with international lenders over a multibillion-dollar bailout as it seeks to address the country’s worsening economic challenges.