Fuel Smuggling Crisis: Bolivia Halts Contracts Amid Investigation
The Bolivian government suspends fuel contracts with Vitol and Trafigura amidst an investigation into smuggled and adulterated gasoline from Chile. The smuggling, involving $150 million of fuel, has caused public unrest and an energy shortage in Bolivia. Cross-border investigations are underway with Chile, Argentina, and Paraguay.
In a decisive move, the Bolivian government has announced the suspension of gasoline contracts with major companies Vitol and Trafigura. This decision follows allegations of poor-quality fuel being smuggled into the country from Chile.
According to Energy Minister Mauricio Medinaceli, around 5,000 tanker trucks with adulterated fuel reportedly entered Bolivia through a trans-national smuggling network. This illegal operation is estimated to involve approximately $150 million worth of fuel corrupt from October 2025 to March 2026.
The adulterated fuel, compromised with used oil and contaminated water, has sparked uproar particularly among public transport drivers in La Paz and El Alto who have gone on strike, attributing vehicle damage to the low-quality gasoline. Bolivia, amid an energy shortage, continues to investigate the issue in collaboration with neighboring countries.
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