Keeping fuel subsidies will generate more shortages | Mantener la subvención a los combustibles generará más desabastecimiento

By Unitel:

Former Hydrocarbons Minister:

“The country cannot afford to import $3 billion annually and then subsidize fuel that, on top of everything, ends up going across our borders,” Álvaro Ríos said.

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Ríos stated that “Bolivia has no choice but to remove subsidies”

Former Hydrocarbons Minister Álvaro Ríos warned that maintaining fuel subsidies will lead to greater shortages, after a period of long lines at gas stations that persisted under Luis Arce’s government during the final months of his administration.

In his view, the country is facing a situation where the current subsidized model no longer guarantees stable or sustainable supply, compounded by allegations of diversion to smuggling networks and heavy fiscal pressure.

“The most expensive energy is the one you don’t have, and this (removing the subsidy) is something we have been requesting for a long time. And if it is not done, I believe the consequences will be more shortages and without energy, well, there is no economy,” he said in an interview with UNITEL.

In this context, concerns also relate to recent allegations made by President Rodrigo Paz, who stated that part of the fuel intended for the domestic market was diverted and that this “caused shortages and multimillion-dollar losses,” affecting producers, transport workers, and employees across the country.

Ríos stressed that “Bolivia has to remove subsidies, there is no other way,” and reiterated that swift action is needed to prevent the energy shortage from worsening. He recommended starting with lifting subsidies on diesel and gasoline, while LPG and natural gas should undergo a gradual adjustment process.

As for mitigating measures, he suggested that certain targeted support could remain to reduce the impact on the most vulnerable households, at least regarding LPG. In the case of diesel and gasoline, he insisted that adjustments will be necessary and that efforts must be made to keep inflation “as low as possible.”

“The country cannot afford to import $3 billion annually and then subsidize fuel that, on top of everything, ends up going across our borders,” the former minister added, also stressing the urgent need for the Government to allow private-sector participation in supply.

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