Fuel shortage in Bolivia impacts Peru: economic and energy crisis in the region

The fuel shortage and dollar crisis facing Bolivia are generating impacts that go beyond its borders, also affecting neighboring countries like Peru. The current situation in Bolivia represents a hard blow to its economy, which has relied heavily on the gas industry since its nationalization in 2006 during Evo Morales' government. However, the lack of investments in exploration has weakened this economic engine, causing a 50% drop in gas exports since their peak in 2013. The Bolivian government has been forced to use its dollar reserves to maintain subsidies for imported fuel at international prices, leading to a drastic decrease in these reserves in recent years. Faced with growing currency scarcity, measures have been taken such as sending military personnel to gas stations to prevent fuel smuggling to countries like Peru and Argentina. Álvaro Ríos, an energy and hydrocarbon analyst, has pointed out that Bolivia has taken the wrong paths by raising taxes, becoming statist, and maintaining long-term subsidies. These decisions have contributed to the economic and energy crisis facing the country, which now finds itself needing to import a large part of its fuel, requiring a significant amount of dollars. The situation in Bolivia also concerns Peru, especially in the Puno region, where fuel scarcity could lead to price increases and hinder access to this basic resource for citizens. Carlos Herrera Descalzi, former Minister of Energy and Mines of Peru, has warned about the possibility that in the future the country may also face problems with gas supply, having to resort to importation. Given the crisis in Bolivia, the possibility of Peru exporting fuel to the neighboring country is complicated due to high land transportation costs. Herrera Descalzi suggests that an alternative for Bolivia could be to import gas from Argentina, which is developing the Vaca Muerta field and could have gas available in the coming years to meet its internal demand and potentially export. In conclusion, the fuel and dollar crisis in Bolivia is having significant effects not only at the national level but also in neighboring countries like Peru. This situation highlights the importance of sustainable long-term economic and energy policies to avoid crises like the one Bolivia is currently facing. Regional collaboration and the search for joint solutions could be key to mitigating the impacts of this crisis in the region.