Bolivia: Private fuel import bill signed into law to tackle shortages
Tuesday, October 28th 2025 – 09:19 UTC
Arce agreed to block private initiatives but warned of a sharp price increase
Bolivian President Luis Arce Catacora enacted the so-called Short Law on Monday to tackle fuel shortages and guarantee the supply of diesel and gasoline. The legislation, which originated with the Pro Santa Cruz Committee and was passed by the Legislative Assembly last week, offers an alternative solution to the recurring fuel scarcity.
The new measure introduces an exceptional and temporary regime for private operators to boost national supply through an exceptional, agile, and transparent regime for the import, entry, transport, and direct dispatch of gasoline, diesel, and LPG by private operators.
For a period of three months, private individuals and companies are authorized to import diesel and gasoline for sale in the domestic market.
Private companies can sell their directly imported fuel at a differentiated price (market price) if the state oil company, YPFB, cannot meet 100% of their required supply.
The National Hydrocarbons Agency (ANH) must grant an Exceptional Import and Direct Dispatch License (LEIDD) to petrol stations within a maximum of 48 business hours, while non-technical requirements from the ANH and Customs are eliminated.
Imported fuel is exempt from the Transfer Tax (IT) and the Value Added Tax (VAT) during the law’s validity.
The ANH is mandated to implement control mechanisms to prevent subsidized fuel from being sold as higher-priced imported fuel. Penalties for hoarding, unauthorized sales, deviation, or speculation (over 10% of the declared price) include the forfeiture of the cargo’s value, license suspension, and criminal charges.
While President Arce immediately promulgated the law, he expressed reservations about its long-term effects and efficiency, underlining that his administration had already issued several regulations to facilitate fuel imports, including allowing the private sector to import for both self-consumption and commercial sale. He noted that currently, 72 companies hold import permits, but private imports have been minimal (only 45,314 m³ for consumption and 17,785 m³ for sale from January to September 2025).
Arce insisted that despite political differences and certain observations regarding operational factors not being considered in the text, the government would not sabotage or block initiatives that could help solve a national problem.
The President issued a stern warning to the public, asserting that the law’s implementation of absolute free import and commercialization will inevitably lead to higher fuel prices compared to the subsidized fuel sold at current gas stations. He cautioned that this generalized increase would have an immediate negative effect on the economy of Bolivian families.
The law is an emergency measure aimed at resolving the current supply crunch by opening the market, but it highlights the delicate balance between market-based solutions and the maintenance of the national fuel subsidy.
