Bolivia · ENERGY
Key Facts
- —What happened Bolivia raised the subsidized diesel quota for small farmers to 2,500 liters a month.
- —How big The price stays at 9.80 bolivianos (US$0.81) per liter under Supreme Decree 5698.
- —The catch The YPFB intervention is temporary, up to 180 days, extendable once by 90.
- —Who it hits Large consumers lost their diesel subsidy on August 17, now paying 18 bolivianos (US$1.49).
- —What comes next YPFB is meant to exit fuel sales and focus on exploration, production, and refining.
Bolivia expands subsidized diesel for small farmers and takes over its state oil company, YPFB. The moves aim to end protests and fix fuel supply.
Bolivia raised its diesel quota for small farmers on September 2, 2026. The government also intervened in state oil firm YPFB to fix fuel supply.
New Diesel Quota for Farmers
Bolivia’s government expanded the subsidized diesel quota for small agricultural producers on September 2, 2026. Under Supreme Decree 5698, they can now buy between 121 and 2,500 liters a month.
The price stays at 9.80 bolivianos (US$0.81) per liter. The diesel is for the producer’s own use and cannot be resold.
About the Dollar Conversions
This article converts bolivianos to dollars at 12.06 bolivianos per dollar. That is the open-market rate from open.er-api.com on 3 September 2026, close to Bolivia’s parallel-market rate that week.
Bolivia’s old official peg of 6.96 bolivianos per dollar is no longer used in most everyday transactions. Bolivians now buy and sell dollars closer to the market rate used here.
How Producers Qualify
Producers must show a national ID card to buy diesel under the new quota. They must also be registered in Bolivia’s Unified Agricultural Regime, known as the RAU.
The RAU must send updated lists of eligible producers by the 10th business day of each month. Regulators had three business days to write rules for Supreme Decree 5698.
President Paz Signs the Decree
President Rodrigo Paz promulgated Supreme Decree 5698 on September 2, 2026. It followed producer rejection of an earlier measure, Supreme Decree 5676.
Producers had blocked roads over the terms of Decree 5676 before the government revised its approach. The new decree raised the diesel quota rather than reversing the August subsidy split.
Protests in Beni Over Diesel
On August 26, producers from Marban province in Beni blocked the San Pablo bridge. Their demand was the repeal of the decree that had split the diesel subsidy.
The government expected the new, larger quota to end these protests. Officials announced the quota increase on September 2, 2026.
Producers had briefly lifted the San Pablo bridge blockade earlier, after the government pledged to guarantee diesel supply. They later resumed the blockade over continued shortages.
YPFB Intervention Decree
Supreme Decree 5697, promulgated on September 1, orders an extraordinary intervention of the state oil company. The intervention lasts up to 180 calendar days, extendable once by 90 more days.
The goal is to review the company’s commercialization, logistics, and fuel traceability. It also aims to strengthen the import and distribution chain.
The commission will look for fuel smuggling networks, hoarding, and diversions in the supply chain. The decree says the intervention does not abolish the state oil company or change its legal structure.
Commission Members Named
The the company intervention commission has six members. They include Fernando Aramayo of the Presidency, Christian Morales of Economy, and Oscar Mario Justiniano of Production.
Also on the commission are Marcelo Blanco of Hydrocarbons and Mauricio Zamora of Public Works. Vice-Minister of Transparency Yamil Garcia completes the six-person the state oil company commission.
YPFB to Leave Fuel Sales
Public Works Minister Mauricio Zamora said the company should leave fuel commercialization and focus on exploring for and producing hydrocarbons. He used a strong metaphor to make his point.
Zamora said, ‘We have to remove this cancer that YPFB has, and that cancer is called commercialization.’ He added, ‘We are going to do like a chemotherapy to remove this cancer that is harming Bolivians.’
Blanco on YPFB’s Natural Role
Hydrocarbons Minister Marcelo Blanco said YPFB should return to its natural role. He said YPFB was not created to sell fuel to the public.
Blanco said YPFB should instead focus on exploration, production, and refinery work. Both ministers made their comments at a press conference on September 2, 2026.
Subsidy Split in August
On August 17, the government removed the diesel subsidy for large consumers. It set a new reference price of 18.00 bolivianos (US$1.49) per liter.
Public and private transport with minimum consumption, plus small agricultural producers, kept paying 9.80 bolivianos (US$0.81) per liter.
Government Response to Fuel Shortages
The government also doubled the Treasury funds backing the fuel subsidy, to 2,000 million bolivianos (US$165.8 million). This followed reported shortages and roadblocks around the country.
The YPFB intervention is a separate step to address inefficiencies and alleged corruption at YPFB. Officials say the goal is a stable fuel supply.
Minister Explains Decree in the Field
Production Minister Oscar Mario Justiniano traveled to Cuatro Canadas with YPFB technicians on September 2. He went to explain Decree 5698 and review local fuel supply.
Cuatro Canadas is a farming area in Santa Cruz department. Producers there also rely on the subsidized diesel quota set by YPFB and the government.
Bolivia’s Broader Fuel Crisis
Bolivia has faced fuel shortages and long lines at gas stations for months. A shortage of US dollars has made it harder for YPFB to pay foreign fuel suppliers.
The dollar shortage has also pushed Bolivia toward multiple exchange rates. That is why this article uses the open-market rate rather than Bolivia’s old official peg.
Background on YPFB
YPFB is Bolivia’s state oil company. Officials now criticize its role in selling fuel directly to the public.
The government argues YPFB was not created for that purpose. The current intervention aims to correct this, according to ministers.
What Led to the Intervention
The YPFB intervention follows months of fuel shortages and protests around Bolivia. The government has faced criticism over how it manages YPFB.
Officials allege corruption and inefficiency inside YPFB’s fuel distribution business. The intervention commission is meant to investigate and fix these problems.
Next Steps for Fuel Supply
The intervention commission will oversee YPFB’s operations for up to 180 days, extendable once by 90 more days. Small farmers can now buy up to 2,500 liters of diesel a month at 9.80 bolivianos (US$0.81).
Officials have not given a timeline for when YPFB will fully exit fuel commercialization. The government says the intervention itself is a temporary, not permanent, measure.
Frequently Asked Questions
What is the new diesel quota for small farmers in Bolivia?
Small farmers can now buy between 121 and 2,500 liters of diesel a month. The price is 9.80 bolivianos (US$0.81) per liter.
Why did Bolivia intervene in YPFB?
The government wants YPFB to leave fuel sales and focus on exploration and refining. The YPFB intervention aims to fix fuel supply and address alleged corruption.
How long will the YPFB intervention last?
The YPFB intervention lasts up to 180 calendar days. It can be extended once for an additional 90 days.
What caused the protests in Beni?
Producers in Marban province blocked a bridge on August 26. They demanded repeal of the decree that had split the diesel subsidy.
Connected Coverage
Sources: eju.tv; Vision360; El Mundo; Jornada; Enfoque News; Urgente.bo; El Dia; open.er-api.com; The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times