Andean Group - March 2026

Bolivia is facing yet another fuel crisis, after revelations in early February that contaminated fuel was distributed by state-owned hydrocarbons company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). The company’s president, Yussef Akly, acknowledged that of the approximately 3m vehicles in Bolivia, around 2,000 may have been damaged by contaminated fuel, saying that the problem is mostly concentrated in the departments of Santa Cruz, Beni, and Oruro. The contamination was apparently caused by rubber and manganese residue in storage tanks. However, transport unions in the capital La Paz have complained that hundreds of their vehicles have also been affected. The Bolivian mechanics’ association, CIMB, said on 3 February that as many as 60% of vehicles being seen by mechanics were having problems due to poor quality fuel.

President Rodrigo Paz has claimed that the contamination is the result of sabotage by YPFB employees opposed to his economic liberalisation programme. A legislative commission has also been set up to investigate any potential irregularities in the contracts involved in importing fuel, amid speculation that the problems may have arisen after Paz liberalised fuel import rules after taking office in November to address shortages.

YFPB has launched a digital platform that can be used to report damage to vehicles caused by the contaminated fuel, with the promise that those affected will be eligible for compensation. However, drivers’ unions have continued to express their displeasure, calling for the government to put measures in place to ensure that all fuel sold in Bolivia is safe.