Bolivia issues incentives to import fuel, help private sector meet shortages
Bolivia's energy ministry announced a set of incentives to import gasoline and diesel, in a bid to promote the country's private market and overcome an extended fuel shortage.
The incentives include cutting waiting times for import permits, as well as cutting taxes on imported supplies, according to a ministry statement.
Part of a government decree, the incentives aim to boost the landlocked Andean nation's economy, including its agriculture, mining and construction sectors. Bolivia has been heavily-dependent on foreign fuel supplies as local production only accounts for around 15% of diesel demand, and 30% for gasoline.
The push for more imports comes as Bolivia has suffered through a year-long fuel shortage made worse by declining local oil and gas production, as well as a lack of hard currency needed to finance external supplies.
The ministry estimates that under the decree permit wait times that previously took up to a year to conclude, should now take five to 10 days, in addition to other time-saving measures.
Authorized periods for fuel imports and marketing activities will be extended from one year to three years, while tariff duty on imported gasoline will be cut to zero, the statement added.
In an interview with local broadcaster RTP, Hydrocarbons and Energy Minister Alejandro Gallardo pointed to private businesses largely shunning imported supplies in the past.
"The business owners prefer to buy subsidized fuel and not opting for imports, even as they themselves were the ones that suggested that we liberalize fuel imports and marketing," he said.
More than 40 private companies are authorized to import fuel for their own consumption, according to ministry data.
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