Gasoline in Bolivia is cheap, with a liter running around 60 cents. Not only is that a steal in comparison to U.S. and European prices, it’s a bargain compared to prices in neighboring countries like Argentina and Chile. The government accomplishes this feat through heavy subsidization, leveraging its control of the nationalized gas industry. Yet, as is the natural effect of subsidies, it’s a heavy drain on the public coffers. And, as one might expect, it presents an attractive opportunity for folks to cross the border from Argentina or Chile and turn a profit. I’m not sure what the total cost runs, but the Bolivian government felt it grave enough to announce a plan to scrap the subsidies in 2010. That never happened, as the public launched a series of mass protests that forced the government to yield.
With this background in mind, I was only mildly surprised to hear that gas stations in at least some parts of Bolivia were refusing to sell gas to cars with foreign plates. When I heard that was due to a new law, I became a bit more concerned. There are a number of ways to combat the situation short of this drastic step, charging more to foreign motorists being the most obvious.
A quick search on Google cleared things up. According to this report in La Razon, the “law” I was told about does not exist. Here’s the real situation: The law sets the price for cars with Bolivian plates at 3.7 Bolivianos per liter; cars with foreign plates must pay between 8.8 and 9 Bolivianos per liter.
So far so good, from my point of view. So why are gas stations refusing to serve foreigners at the pump? Essentially, there’s a bureaucratic hold-up. The national gas company, YPFB, has yet to generate the necessary paperwork (basically, special receipts) to ensure that sales to foreign motorists are made at the elevated price.
So there you have it. Not nearly as nefarious as I was led to believe. Hopefully they’ll fix this little hiccup in a hurry, and foreign motorists will be on their way. In the meantime, be sure to fill up and carry extra gas before you hit the border.
-NF