Latest News

Bolivia offers incentives for fuel imports to help the private sector cope with shortages

Bolivia offers incentives for fuel imports to help the private sector cope with shortages

Bolivia's Energy Ministry announced a series of incentives on Tuesday to encourage the importation of gasoline and diesel in an effort to boost the private sector and alleviate a fuel shortage.

According to a statement from the ministry, incentives include reducing waiting times for permits and lowering taxes on imported goods.

The incentives, which are part of a government order, aim to boost Andean economy, especially in the agriculture, mining, and construction sectors. Bolivia is heavily dependent on imported fuels, as the local production of gasoline and diesel only makes up around 30%.

Bolivia is pushing for increased imports as it has been suffering from a fuel shortage that has lasted over a year. This was made worse by the decline in local oil and natural gas production as well as a dearth of hard currency to pay for external supplies.

In addition to time-saving measures, the ministry estimates that, under the decree, permit waiting times, which previously took as long as a year, will now only take between five and ten days.

The statement said that the period for fuel imports, marketing and authorization will be increased from one to three years. Tariff duty on imported gasoline is also to be reduced to zero.

In an interview given to the local broadcaster RTP by Hydrocarbons and energy Minister Alejandro Gallardo, he pointed out that private businesses had in the past largely shunned imported goods.

He said that "the business owners prefer to purchase subsidized fuel rather than imports" despite the fact that they were themselves the ones who suggested we liberalize fuel marketing and imports.

According to data from the ministry, more than 40 private companies have been authorized to import fuel to meet their own needs. (Reporting and editing by Monica Machicao)

(source: Reuters)