MercoPress. South Atlantic News Agency

Bolivia's fuel crisis deepens ahead of presidential runoff

The fuel crisis has led to long lines at gas stations and an increase in the price of staple foods

The fuel crisis in Bolivia has deepened just days before this coming weekend's presidential runoff, with stocks plummeting: There is only enough diesel for one day and gasoline for three days, Hydrocarbons Alejandro Gallardo admitted Tuesday. In this context, President Luis Arce Catacora has been accused of causing this problem deliberately.

The cause of this situation is the lack of US dollars to cover the imports. Bolivia needs between US$55 and US$60 million, but the government has been unable to raise that amount in recent weeks, leading to the current constraints.

Two ships carrying fuel are expected between October 20-23, but normalization of distribution is unlikely until after the elections, as unloading depends on favorable weather/tide conditions.

However, the Government has guaranteed a proper supply for the Supreme Electoral Tribunal (TSE) to ensure the elections proceed.

Gallardo dismissed the allegations by presidential candidate Rodrigo Paz Pereira as a “political attack” aimed at gaining political capital for his race. The Minister jumped into the limelight as the president of the state oil company YPFB, Armin Dorgathen, became a fugitive following an arrest warrant.

“We need around $55 to $60 million per week, but we currently do not have these resources. In the last three weeks, there were disbursements in the range of $41 million, $45 million, and $35 million, and obviously, that has led to the current shortage,” the minister admitted at a press conference. 

“We are in quite a complicated situation with diesel; we barely have one day's supply,” Gallardo acknowledged, emphasizing that YPFB is working every day to obtain foreign currency through the various mechanisms available.

“YPFB is working at full capacity,” he also pointed out.

Paz accused Arce of “hiding” fuel to cause anxiety among the population just before the second round of elections. He then “ordered” Arce to release the stored fuel and threatened impeachment proceedings once he takes office, alleging that Arce has agreements with his rival, former President Jorge Tuto Quiroga.

The fuel crisis has led to long lines at gas stations and an increase in the price of staple foods.