Bolivia Ends Diesel Subsidy for Large Consumers as YPFB Admits Crisis
YPFB admitted a structural crisis as Bolivia ended the diesel subsidy for large consumers, roughly doubling the price to about US$1.56 per liter. President Rodrigo Paz separately launched a US$92.7 million emergency employment program. The post Bolivia Ends Diesel Subsidy for Large Consumers as YPFB Admits Crisis appeared first on The Rio Times .
Bolivia's state energy company, YPFB, has admitted to a structural crisis in the hydrocarbons sector, following the government's decision to end the fuel subsidy for large consumers. The subsidy, which had been in place, was abruptly terminated on August 17, 2026, prompting YPFB to acknowledge the gap between international and domestic fuel prices as unsustainable.
President Rodrigo Paz responded by launching an emergency employment program, funded by FONPLATA, aimed at creating approximately 73,000 jobs through municipal paving projects. The subsidy elimination led to a doubling of diesel prices for large consumers, with the government supporting YPFB's fuel costs to maintain supply. The crisis stems from Bolivia's declining production and low refinery capacity, combined with heavy fuel imports.
The government's decision to phase out the subsidy highlights the challenges of shielding consumers and small producers from global fuel price fluctuations while managing public finances.
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