Bolivia puts YPFB under supervision in fuel crisis

Bolivia has put state oil company YPFB under temporary state supervision as the country struggles with scarce fuel and long queues at filling stations.

A government decree dated Tuesday ordered an “extraordinary, transparent and temporary” intervention to “protect the interests of the State.” The measure can last up to 180 days and is also intended to assess how Bolivia imports and distributes fuel.

The president's office said the move would “restore efficiency, strengthen fuel supply and bring transparency to the logistics chain.” A commission made up of several ministerial representatives will oversee the state-owned company.

Hydrocarbons Minister Marcelo Blanco told reporters that “regular measures we had taken didn't work” and attributed the fuel shortage to “logistical shortcomings” in YPFB's import and distribution processes.

The Hydrocarbons Ministry also said it intends gradually to remove YPFB from fuel marketing so the company can focus on extraction, exploration and refining.

The government last week raised diesel prices from 9.80 bolivianos, about 80 US cents, a litre to 18 bolivianos, about $1.50. It said the move was aimed at curbing fuel smuggling to other countries, which it says is worsening shortages.

Farmers angered by the price increase blocked roads in the northeastern Beni department and in Santa Cruz, Bolivia's economic powerhouse.

President Rodrigo Paz declared a state of emergency in June during protests against his administration. Paz took office last November after campaigning on a promise to address Bolivia's economic crisis. His government is in talks with international lenders over a multibillion-dollar bailout.