Bolivia arrests ex-minister Medinaceli over fuel quality crisis

Mauricio Medinaceli, once hailed as a key figure in Bolivia's energy sector, now faces legal scrutiny. Police escorted the economist and international consultant to the Departmental Prosecutor's Office in La Paz, where he is to be questioned by three prosecutors. The charges include anticompetitive practices and dereliction of duty.

Medinaceli joined the cabinet with a strong reputation in energy economics and consulting. He was tasked by Rodrigo Paz with tackling a visible crisis: long lines for diesel and gasoline across Bolivia. Restoring supply and public confidence in the sector was his primary mission.

However, the situation took a sharp turn as vehicles began to break down. Initially dismissed as isolated incidents, these mechanical failures became a national crisis. Drivers reported engine problems shortly after refueling, with mechanics identifying accumulated "carbonilla" (a type of residue) in fuel systems. The focus shifted from scarcity to the quality of fuel being distributed.

Reports of damaged vehicles spread from Trinidad to Santa Cruz, Cochabamba, and La Paz. The term "carbonilla" entered public discourse, increasing pressure on the government. Official explanations for the fuel quality issues varied over time, attempting to address why thousands of vehicles were failing. Initial theories blamed rubber and manganese, then oxidized storage tanks. The government eventually pointed fingers at suppliers Vitol and Trafigura, even considering contract terminations. The president of YPFB, Sebastián Daroca, later proposed a fourth explanation, citing a combination of four technical factors.