Millionaire Fuel Smuggling Exposed | Desvío Millonario de Combustibles al Descubierto

By Raúl Dominguez, El Deber:

The Million-Dollar Fuel Diversion: Government Estimates Illegal Business at Up to US$3 Million a Day

El desvío millonario de combustibles: el Gobierno cifra en hasta $us 3 millones diarios el negocio ilegal

“Two or three million dollars a day are capable of corrupting everything in their path,” said Hydrocarbons Minister Mauricio Medinaceli, when referring to the power wielded by smugglers.

The fuel diversion scheme uncovered by the government continues to reveal new dimensions. This Tuesday, the Minister of Hydrocarbons and Energy, Mauricio Medinaceli, stated that the scale of this illegal operation reached between US$2 million and US$3 million per day.

The disclosure was made during the announcement of fuel and energy price-stabilization measures that the Executive plans to implement through Supreme Decree 5503, at an event held at YPFB offices in Santa Cruz.

“We are facing a level of fully institutionalized corruption, on a large scale, involving a business worth between two and three million dollars per day. That was the magnitude of the fuel diversion,” Medinaceli said.

The minister emphasized that, following the implementation of the new measures, long lines at fuel stations are no longer being observed, especially those involving old trucks whose sole function—according to him—was to load diesel to transport it to the borders. He even noted that once fuel subsidies in Bolivia were partially reduced, diesel shortages began to appear in Peru, including at service stations.

“Two or three million dollars a day are capable of corrupting everything in their way. When we received reports suggesting more police or military control, or even ideas such as nanotechnology or dyeing the diesel to track it, the real solution turned out to be purely economic,” he stressed.

New market players

Medinaceli also announced that the government is working to open the Bolivian market to allow private companies to supply gasoline and diesel through wholesale blocks, a mechanism that was already applied between 2000 and 2005.

“The idea is to invite international companies to form these blocks together with YPFB, which has storage, transport, and refining assets. Part of these blocks will import crude oil, and YPFB will provide refining services in exchange for a fee,” he explained.

Fuel stocks increase

For his part, YPFB president Yussef Akly recalled that Bolivia has historically produced only 60% of the diesel it consumes. Currently, imports cover 100% of diesel consumption and 60% of gasoline demand.

Akly also revealed that when Rodrigo Paz’s government took office, fuel stocks were practically nonexistent. Today, by contrast, they amount to 4.5 days for diesel and 6 days for gasoline.

“That gives us significant stability for economic activity and supports the daily work we carry out to guarantee supply throughout the country,” he stated.

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