La Paz industries struggle with liquidity and diesel shortage post-blockades

Industries in Bolivia's La Paz region continue to grapple with severe liquidity issues and a persistent diesel shortage, weeks after a crippling 53-day blockade ended. The Chamber of Industries of La Paz (Cadinpaz) reports that 80% of businesses are experiencing financial difficulties. Many are operating with limited funds, depending on loans to stay afloat, or barely managing to cover essential expenses.

Cadinpaz President José Iriarte stated that while companies are making significant efforts to recover from the blockades, the ongoing fuel scarcity is now a major impediment. The lack of diesel is paralyzing the logistics chain, causing significant delays in the arrival of raw materials and the distribution of finished products. This disruption is also impacting the fulfillment of export contracts, as transport providers are uncertain about their ability to refuel for return journeys.

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The blockades left a deep lack of liquidity. Companies are making a huge effort to recover, but now the diesel shortage is slowing down that recovery.

The fuel shortage prevents industries from operating at full capacity and recovering the revenue lost during the conflict. This economic strain is beginning to affect employment, with 75% of industries anticipating job risks if the situation does not improve in the next three months. Additionally, 60% of businesses struggled to pay salaries and wages due to liquidity problems during the crisis.

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Truckers arriving from Arica are uncertain if they can refuel to return, and this causes delays. The same happens with our exports. The lack of diesel is slowing down the entire logistics chain.