Wednesday, November 6, 2024

Bolivia maintains ‘frozen’ fuel prices

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“We, as YPFB, have to ensure that we supply the internal market not only in terms of quantity but also in terms of prices. We have frozen prices and these prices will continue like this,” he said.

Roca explained on TV Bolivia that the state company will maintain this index so as not to “affect the family basket of all Bolivians”.

He added that, with the aim of maintaining subsidized prices, strategies are being applied to mitigate the costs of imported fuel, such as trying to direct its income from the west, which is much cheaper compared to its arrival from the southeast.

“Since 2022, now in 2023 – as he described it in his speech – we’re coming in from the West (with fuel) and that will help reduce that aggressive spending of expenses a little bit as a result of higher prices.”

He stressed that this diversification of fuel through various entrances helps to reduce cash expenditures in order to “continue to freeze diesel and gasoline.”

In this context and as part of the transparency policy, the state oil and gas company ordered a special audit of all fuel import contracting operations, according to Roca’s description.

The Planning Director reported that the conflict between Russia and Ukraine affected import prices of gasoline and diesel worldwide, with an increase of up to 77.7 percent.

He noted that in the particular case of Bolivia, import costs increased by 83.8%.

He emphasized that in this context a change in import logistics was implemented, giving priority to the western sector over the southeast, as the latter is up to five times more expensive.

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In addition, transportation costs have been reduced, and during the current year the first fuel import via pipelines to Bolivia was carried out, a method that will be applied from the West starting from the middle of this year, Roca concluded.

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