Bolivia removes diesel subsidy for productive sector, citing high costs and speculation

Bolivia's state oil company, YPFB, has eliminated a diesel subsidy for the productive sector, a move President Sebastián Daroca attributes to the "unsustainable" financial strain on the company. Daroca explained that YPFB has been covering a significant difference between international fuel prices and the subsidized national rate, incurring high financial costs.

The decision, which affects 10-15% of the total subsidy, is also intended to combat fuel speculation and resale. Daroca stated that the price disparity creates a "huge damage" by preventing fuel from reaching the intended productive sectors at the subsidized price, often due to intermediaries driving up costs.

This situation directly impacts transport workers, who face diesel shortages at service stations. YPFB requires about $90 million weekly to cover the nation's gasoline and diesel demand, amounting to roughly $360 million per month. The company relies on credit lines from suppliers, with payment terms of 120 days, creating a significant "floating debt" due to the payment lag.