Latin America Rising > Sabotage intensifies fuel crisis in Bolivia

 

Bolivia alleges fuel sabotage tied to international criminal network

By Macarena Hermosilla

   

Bilivan consumers have felt the impact of contaminated gasoline. More than 10,000 vehicle owners, including long-distance transport operators and private drivers, have reported severe engine damage. File Photo by Luis Gandarilas/EPA

April 1 (UPI) -- Bolivia's government, led by President Rodrigo Paz, said it has uncovered an international criminal network responsible for sabotaging and adulterating imported fuel shipments that entered the country over the past five months.

Interior Minister Marco Antonio Oviedo told a news conference Tuesday that at least 150 million liters of gasoline and diesel were tampered with, citing an official investigation that identified a scheme involving fuel theft and contamination with water and oil in Chilean territory.

Authorities said the operation targeted tanker trucks transporting fuel to Bolivia, particularly in northern Chilean cities. In those locations, part of the fuel was allegedly siphoned off and replaced with a mixture of water and oil, according to local broadcaster Unitel.

President Paz said the adulteration began around October.

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Investigators believe the network operated mainly in Chile, with additional links and operational hubs in Paraguay and Argentina. The direct economic loss to the Bolivian state is estimated at $150 million, excluding indirect costs linked to transport disruptions.

Consumers also have felt the impact. More than 10,000 vehicle owners, including long-distance transport operators and private drivers, have reported severe engine damage.

"We are facing an attack against the assets of Bolivian families," Paz said, adding that the government will pursue legal mechanisms to compensate those affected, according to local newspaper El Deber.

Bolivia's landlocked status makes transporting fuel from Chile critical to its energy supply chain. The country relies on Chilean ports such as Arica, Iquique and Mejillones to receive international shipments of crude oil and refined products.

After a virtual meeting Tuesday, Paz and Chilean President José Antonio Kast agreed on a joint roadmap to dismantle the transnational organized crime network behind the fuel adulteration, according to Bolivia's state-run broadcaster BTV.

As an immediate response, Bolivia announced tighter controls at facilities operated by state energy company Yacimientos Petrolíferos Fiscales Bolivianos, known as YPFB, and the National Hydrocarbons Agency. Authorities will implement mandatory laboratory testing at production sites and border checkpoints.

Civil society groups have called for accountability as the investigation continues, urging authorities to prosecute those responsible abroad and to address potential internal failures that allowed the sabotage to go undetected for months.

The crisis comes as Bolivia faces a severe fuel supply shortage. After a structural decline in domestic hydrocarbon production, which fell about 44% between 2014 and 2024, the country shifted from a net exporter to a heavily import-dependent market. Bolivia now imports about 90% of the diesel and 50% of the gasoline it consumes.

The situation has worsened since 2023 due to a shortage of foreign currency, particularly U.S. dollars, complicating payments to international suppliers and contributing to intermittent shortages and partial disruptions in transport and productive sectors.