Bolivia is currently facing a widespread fuel shortage (i.e., diesel and gasoline) that has led to long lines at gas stations, and consequently, the entire production chain of goods and services has been affected. In fact, just a few days ago, public services in the city of Santa Cruz de la Sierra were reduced to 40% due to the lack of fuel.
In response to this situation, on November 13th the government issued Supreme Decree No. 5271, with the aim of deregulating the fuel market in Bolivia. Specifically, this Decree allows the free importation and marketing of fuels by individuals and private companies.
Below, we highlight the key aspects of Supreme Decree No. 5271:
In our opinion, this prohibition could be significant in considering the commercial strategies of certain companies (e.g., fuel vendors will have to decide whether they prefer to distribute the subsidized fuels provided by the government or, in some cases, those imported privately).
Given the above, it is evident that this is a new opportunity for the energy sector in Bolivia. At Dentons Guevara & Gutiérrez, we are well-positioned to assist our clients in navigating these new regulations and any that may arise from them, drawing on our more than twenty-five years of experience assisting the energy industry.