Inability to ensure subsidized fuel supply | Incapacidad para garantizar el suministro subsidiado de combustible

By Brújula Digital:

Facing Supply Shortages, Government Offers Productive Sector Fuel Imports at International Prices

After admitting its inability to ensure subsidized fuel supply, the government is offering miners and the agricultural sector the option to import fuel at international prices through YPFB

The Minister of Hydrocarbons (2nd from Right) Presents the Government’s Offer. Photo: Video Screenshot

After acknowledging the inability to supply 100% of subsidized fuel to the national market, the government has established a “mechanism” allowing the productive sector to obtain the fuel it requires through fuel imports at international prices via the state-owned oil company.

This position was made public on Monday by the Minister of Hydrocarbons, Alejandro Gallardo, and the President of Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), Armin Dorgathen, following a meeting with the President of the Regional Federation of Gold Mining Cooperatives, Eloy Sirpa.

Gallardo stated that, in order to ensure fuel supply to the productive sector, specifically the mining sector, which generates foreign currency, “YPFB has developed a mechanism through which it will carry out fuel imports at international prices.”

The minister mentioned that this offer would also be presented in the coming days to the agricultural sector, which is entering its harvest season, particularly in the eastern region.

Meanwhile, Dorgathen explained that this mechanism is a temporary solution offered to the productive sector since the government is currently unable to supply 100% of the subsidized fuel, covering only 40% to 50% due to a lack of foreign currency. “Free fuel importation is something that has already been approved and has been in place for several months; however, we understand that the cost of free importation without subsidies is much higher,” he added.

“As YPFB, we have created this program as a temporary solution to import fuel for the productive sectors, such as the mining sector, with which we are currently engaged, through YPFB Logística—our logistics company that facilitates fuel transport—so that we can ensure 100% supply for the agricultural sector,” Dorgathen stated.

Both officials emphasized that the country lacks foreign currency to purchase fuel because the Legislative Assembly has not approved international loans to acquire these funds.

BD/JJC

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