Bolivia’s Fuel Crisis Fuels Surge in Electric Vehicle Adoption

After President Rodrigo Paz repealed a long-standing fuel subsidy in December, Bolivia faced acute gasoline shortages. Within weeks, state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) was accused of distributing gasoline contaminated with gum and manganese, sparking the “junk gasoline” scandal, strikes and protests that pushed many drivers toward electric vehicles.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

Under former President Luis Arce, Bolivia subsidised fuel by buying it at world prices and selling it at half cost, draining over $2 billion annually. The country imports about 80 % of its diesel and 55 % of its gasoline. After the subsidy’s repeal in December 2023, gasoline prices nearly doubled and long queues at stations became routine, eroding public confidence.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

EV registrations rose from 500 to 3,352 between 2019 and 2024 (Single Registry for Tax Administration). EVs remain a tiny fraction of the estimated 2.6 million vehicles in a country of 12 million people. Most imported EVs come from China, followed by the United States. El Alto–La Paz has only three public charging stations for 1.6 million residents.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

President Rodrigo Paz – repealed the subsidy, removed import tariffs, and blamed gasoline contamination on residues left in storage tanks from the Arce administration. YPFB – state oil firm implicated in the scandal. Swisscontact – nonprofit; electromobility expert Freddy Koch monitors EV trends. Local entrepreneurs such as electrician Marcelo Laura are installing charging stations.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

President Paz said the contaminated gasoline stemmed from residues in storage tanks from the previous administration and framed the incident as sabotage. To mitigate the crisis, the government eliminated import tariffs on all vehicle types, fostering competition and lowering EV purchase costs. Swisscontact’s analysis highlighted exponential EV growth and projected the national fleet could triple within two to three years if trends continue.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

Transport operators reported that low-quality gasoline damaged engines, prompting calls for compensation. The “junk gasoline” scandal triggered strikes and the resignation of two YPFB officials. Critics note that the scarcity of public charging stations persists despite tariff cuts.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

• “Since last year, I’ve been trying to get an electric car to save on costs,” — Simón Huanca, artisan

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

• “The investment exceeds $36,000, but I no longer waste valuable working hours searching for fuel or managing vehicle repairs,” — Ever Vera, lawyer

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

• “The growth is exponential,” — Freddy Koch, Swisscontact

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

• “There aren’t many public charging stations,” — Marcelo Laura, electrician

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

The sabotage claim lacks independent verification, and the exact source of gum and manganese remains unconfirmed. Information on charging-station capacity beyond the three public sites is missing.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars

Observers expect EV numbers to rise sharply as tariffs stay low and private charging networks expand. Swisscontact projects the fleet could triple within two to three years. The growing market is spurring new businesses in charging-station installation.

Bolivia’s fuel shortages and 'junk gasoline' drive a surge in electric cars