Bolivia has ordered the temporary state intervention of its national oil company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), as persistent fuel shortages leave motorists facing long queues at filling stations.
The intervention was ordered by President Rodrigo Paz through Supreme Decree 5697, approved on 1 September and published on Wednesday. The government said the move was necessary to address weaknesses in the importation and distribution of petrol and diesel and protect the country’s energy security.
Under the decree, a special state intervention commission made up of officials from several government ministries will oversee YPFB’s operations for up to 180 days. The period can be extended once for a further 90 days if the problems that prompted the intervention persist.
The government stressed that the measure does not mean the abolition of YPFB or a change to its legal status or institutional structure.
The commission will examine the company’s commercial, logistical and fuel distribution operations, including the movement and traceability of petrol and diesel. It will also investigate possible irregularities involving fuel diversion, stockpiling and smuggling.
The intervention comes as Bolivia continues to struggle with fuel supplies. Long queues have become a recurring feature at filling stations, with shortages particularly affecting diesel, although petrol supplies have also been disrupted.
Bolivia has become heavily dependent on imported fuel. The country currently imports about 60 per cent of the petrol it consumes and around 95 per cent of its diesel, according to EFE. The imports cost the country about $90 million a week.
The shortages have become a major challenge for Paz, who took office in November 2025 after campaigning on promises to tackle Bolivia’s deep economic problems and improve fuel availability.
Government officials have blamed the supply crisis on logistical problems, as well as alleged corruption, fuel diversion and smuggling. Previous measures aimed at easing the shortages have failed to fully restore regular supplies.
Hydrocarbons Minister Marcelo Blanco said the intervention was necessary because earlier measures had not produced the expected results. The government wants to regain control of the fuel supply chain and reduce the queues that have frustrated motorists across the country.
YPFB has maintained that its operations continue normally despite the intervention. The company said the measure is focused on the areas of fuel importation, logistics, distribution, commercialisation and traceability. Its executive president, Sebastián Daroca, remains in office.
The government says the intervention is intended to provide a clearer picture of what is going wrong in the fuel supply chain and produce recommendations for improving YPFB’s operational and administrative performance.
For millions of Bolivians, however, the immediate test will be whether the measure translates into shorter queues and more reliable supplies at filling stations.