Page Seven / La Paz
Between 2016 and 2021, the cost of the diesel and gasoline subsidy skyrocketed from 1,424 million bolivianos to 4,330 million bolivianos, according to official data from Yacimientos Petroliferos Fiscales Bolivianos (YPFB). According to the state oil company, the growth has to do with the fall in production, a greater demand for fuels and the increase in the international price of oil.
“The most representative subsidies, due to the amounts they imply, correspond to the subsidy for the importation of diesel and gasoline, whose behavior responds to the growth in their demand, the reduction in production and the fluctuation of the international price quotations of the hydrocarbons”, specifies YPFB in the 2021 Final Public Accountability Hearing report.
In 2016, the gasoline subsidy only represented an outlay of 118 million bolivianos and since then it began to grow every year until it reached 993 million bolivianos last year. The highest peak was in 2019 when 1,101 million Bolivians were spent (see graph).
In the case of diesel, this cost in 2016 only reached 1,306 million bolivianos and last year it reached its highest value with 3,337 million bolivianos.
YPFB warns in the report that in this context, if import substitution measures are not applied, a continuous growth of the subsidy to these fuels is expected.
This generates liquidity risks for Deposits because the costs incurred by the company for imports, which are not covered by the market rate, are subsidized with Fiscal Credit Notes (Nocres).
According to the state oil company, these papers are difficult to monetize, considering that they do not represent benefits for buyers and are limited to the payment of certain taxes.
In the General State Budget (PGE) 2022, an expenditure of 4,794.6 million Bolivians is projected to subsidize hydrocarbons this year.
Solutions
YPFB reported that various plans and studies are being evaluated to contribute in the future to import substitution.
Among these are three projects: construction of a renewable diesel plant (HVO), biodiesel plant and production of synthetic diesel.
On the other hand, the feasibility of carrying out studies for hydrodiesel and GTL production projects will be evaluated.
Last week the Executive Branch approved by supreme decree the importation of crude oil to feed the reserves and produce more gasoline and diesel, but the analyst Álvaro Ríos observed that the purchase will have to be made at the international price that is currently valid at 87 dollars. and, in addition, transportation costs must be covered.
Production of gas and liquids down
- Offer The production of natural gas on average in 2021 was 45.09 MMmcd, according to official data exposed in the Final Public Rendering of Accounts 2021 of the Ministry of Hydrocarbons by YPFB.
- Gas In 2016, natural gas production reached 56.63 MMmcd and then began to decline.
- Availability The production of liquid hydrocarbons on average was 41,340 barrels per day in 2021. In 2016, production reached 56,560 barrels.
- Gap The deficit in fuel production has grown in recent years and the country now imports larger volumes. Last year in the case of diesel it reached 24,103 barrels and in gasoline, 19,256.
