Bolivia Places State Oil Company YPFB Under Supervision Amid Fuel Crisis

The Bolivian government placed the state-owned oil company YPFB under temporary state supervision on September 2, 2026, following severe nationwide fuel shortages and logistics failures in importation and distribution, according to official announcements reported by France 24.

President Rodrigo Paz’s administration published a decree in the official gazette ordering an extraordinary state intervention for up to 180 days, with a possible single 90-day extension. According to the presidency’s statements on social media, the measure aims to restore operational efficiency, secure fuel supplies, and bring transparency to the supply chain. Hydrocarbons Minister Marcelo Blanco stated during a press conference that ordinary government measures failed to fix persistent distribution bottlenecks, prompting the extraordinary takeover.

Restructuring YPFB and Ending Fuel Subsidies

Under the restructuring plan, the Bolivian government intends to gradually strip YPFB of its commercialization duties and transfer fuel sales to private enterprises, shifting the state company’s focus strictly toward exploration, exploitation, and refining. Minister Blanco emphasized that the goal is for YPFB to return to its natural role rather than managing retail hydrocarbons. This shift follows December 2025 policy changes when President Paz eliminated fuel subsidies—a hallmark of previous socialist administrations led by Evo Morales from 2006 to 2019 and Luis Arce from 2020 to 2025. Authorities blamed those subsidies for draining the nation’s foreign currency reserves and choking import channels.

Despite initial promises that ending subsidies would stop shortages, the energy crisis deepened in January 2026 when thousands of vehicle owners filed complaints against YPFB for distributing low-quality gasoline that damaged engines. Minister of Public Works Mauricio Zamora later told reporters that half of all state-imported fuel was smuggled out of the country with the complicity of YPFB employees. To curb cross-border smuggling, the government doubled the retail price of diesel to 1.5 dollars per liter.

Road Blockades and Ongoing Protests

The diesel price hike triggered fresh social unrest across Bolivia. Peasants began blocking major thoroughfares in late August, setting up roadblocks with tires and downed trees in the eastern department of Santa Cruz to disrupt commercial traffic. These demonstrations defy an ongoing state of emergency declared by the executive branch to suppress protests against the broader economic crisis, which stands as Bolivia’s most severe downturn in forty years.

Long queues continue to form outside service stations nationwide, with many motorists waiting overnight for fuel deliveries. In September 2026, Bolivia relied on imports for roughly 60 percent of its gasoline and 95 percent of its diesel, representing a weekly import bill of approximately 90 million dollars.