YPFB reduces fuel import costs and the disbursement for the subsidy drops more than 100%

This YPFB release was published using machine translation.

La Paz, July 1, 2023 (AN-YPFB). – YPFB reduces the costs of importing fuels, so that the disbursement for the subsidy falls by more than 100% for the benefit of the country. An example of this is that, in May of this administration, the disbursement for the subsidy by the Government was Bs 2.76 per liter of diesel oil, while the highest peak was registered in June 2022 with Bs 6, 05.

"This cost reduction is due to the fact that the state oil company managed to implement changes in the logistics of bringing the product into the country and the behavior of international prices, a situation that affects the disbursement of the subsidy per liter of both fuels," said Armin. Dorgathen, president of YPFB.

In May and June of last year, diesel was imported at a price of Bs 10.14 per liter due to the war between Russia and Ukraine, which made prices more expensive. Of this total amount, the subsidy represented more than 50%, that is, Bs 5.99 and Bs 6.05, respectively, according to the months mentioned.

“The objective is that the price of Bs 3.72 per liter of diesel with which it is sold in service stations is maintained to take care of the economy of Bolivians, that is why it is subsidized. We have achieved a significant reduction in import costs and we have kept the sale price of diesel frozen for more than a decade. However, now it is more challenging due to the global war that makes it more expensive and difficult to acquire the product,” said the executive of the state oil company.

The National Government, through the state oil company, complies with the fuel supply and works to maintain its price with the aim of reducing the cost of purchasing this fuel to benefit the different sectors.

“The objective is to maintain fuel price stability, reduce import prices, reach import values between Bs 4 and Bs 5 per liter, so that the subsidy is Bs 1. This is the result of a year of work," Dorgathen added.

In addition, according to statistical information, it can be seen that YPFB's work is bearing fruit for the benefit of the country's economy. Since January of this year, disbursements per subsidy have been reduced from Bs 4.17 that month, to Bs 3.74 in February, to Bs 3.58 in March, to Bs 3.19 in April and to Bs 2.76 in May.

Additionally, this June and July there will be improvements in logistics, which will translate into the transportation of fuels through pipelines and polyducts to better reach users and prevent smuggling.