Diesel Shortage Strains Ties in Bolivia

LA PAZ, Bolivia


“There has been a significant increase in demand for diesel, particularly in Santa Cruz,” Villegas said.

Bolivia’s is South America’s second largest producer of natural gas, but its diesel refining capacity cannot meet domestic demand. And despite decades of chronic shortages, the government spends $100 million each year to subsidize the fuel, creating an opportunity for many Bolivians to smuggle diesel out to neighboring countries for resale at a higher price.

AP