Bolivia’s parliament approved a bill on Friday that allows for three months of private fuel imports to address an acute shortage that is causing endless queues at gas stations in the Andean country.

Until yesterday, purchases were made in a centralized way, by the public oil company YPFB, which procured fuel at international market prices and distributed it, subsidized, in the domestic market.

The president’s government Louis Arcewho will leave office on November 8, has seen the country’s dollar reserves nearly depleted by keeping the fuel subsidy policy in place.

Lacking foreign exchange, supply became increasingly erratic.

Purpose of the new law “is to apply exceptional measures which will allow, for three months, the import and distribution of diesel oil, petrol and LPG by private operators”, explained in an announcement by the Parliament, so that it is guaranteed “the national supply” in this “state of emergency”.

The draft law was proposed by civil society organizations and the fuel industry, under a mechanism enabling citizens’ initiatives.

Companies and individuals will be able to import fuel tax-free under state supervision. Their distribution will be done at market prices as long as the public is not able to cover 100% of the demand.

Bolivia is facing off with a serious financial crisisattributed mainly to the policy of price subsidies. Inflation exceeded 23% in September on an annual basis; the World Bank predicts a contraction in economic activity until at least 2027.

The president-elect, the center-right senator Rodrigo Pazannounced during the election campaign that he intended to more than halve fuel price subsidies, which cost the public €2.17 billion in the ongoing 2025 budget. However, he pledged to keep fuel prices low for public transport companies.