Facing the traffic, let’s lift the fuel subsidy! – Frente al tráfico, ¡levantemos el subsidio a los combustibles!

Editorial, Correo del Sur:

Fuel Trafficking

The fuel shortage causing long lines at gas stations, particularly in Potosí, is driven by the illegal hoarding of fuel for resale in the northern part of the department. An indigenous authority has confirmed that the pack animals of the past have been replaced by illegal cars, known as “chutos,” which are so numerous in that part of the country that they consume large amounts of fuel.

This trafficking is not limited to Potosí. A week ago, the National Hydrocarbons Agency (ANH) and the Bolivian Police executed what is beginning to be called “the biggest blow” to fuel diversion in the country. They discovered and possibly dismantled a criminal gang dedicated to hoarding and reselling diesel in the city of El Alto.

In two months, this irregular group managed to divert 3.6 million liters of gasoline and diesel, causing an economic loss of 15 million bolivianos to the state.

Meanwhile, the gang, which involved at least six gas stations, obtained an illicit profit of 25 million bolivianos, according to calculations by sector authorities.

This means that we are not just talking about a few individuals hoarding fuel, but a criminal organization working with large quantities.

The volume diverted is equivalent to almost a month and 15 days of consumption in the municipality of Cobija, which, according to technical data from Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), has an average daily consumption of 42,000 liters of gasoline and 43,000 liters of diesel.

All these events came to public attention while dozens of vehicles formed long lines at gas stations, creating collective panic, while the government kept insisting that the fuel supply distributed at the stations should be more than sufficient for the entire country’s vehicle fleet.

The blow executed last Tuesday largely answers the public’s questions about the alleged shortage of diesel and gasoline and somehow confirms the government’s version regarding hydrocarbon speculation. It is outrageous to learn the true cause of the fuel shortage.

The resale of the 3.6 million liters of hoarded fuel, sold at 10 to 15 bolivianos per liter, generated 40 million bolivianos. Subtracting the cost of subsidized diesel and gasoline, this results in an illicit profit of 25 million bolivianos for the criminal group.

However, another question remains: If it is possible to divert such a large quantity of fuel in the country despite all security and control measures, how many more cases like this exist that we are unaware of? Is it so easy to circumvent what was considered a strict ANH oversight?

Finally, the issue brings to the table the debate on whether it is worth maintaining the hydrocarbon subsidy policy, which costs the state so much. Is it not time to gradually eliminate this benefit? After all, we now know the destination of this subsidized stock.

Lifting the fuel subsidy will not be traumatic if applied gradually, and this seems, for now, the effective solution to a problem like fuel trafficking, which has been growing steadily and harmfully in the country.

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