On December 17, 2025, the Executive Branch issued Supreme Decree No. 5503 (DS 5503), an emergency decree aimed at the economic, financial and social stabilization of Bolivia. DS 5503 introduces structural changes to the tax, hydrocarbons, investment and agribusiness regimes.

The Decree was isssued in response to the current economic, financial and social crisis, including fuel shortages, the depletion of international reserves and the macroeconomic imbalance currently affecting the country. Among other factors, this crisis has been driven by: the high cost of subsidies for fuel imported by YPFB; the sustained decline in investment in the hydrocarbons sector; and the resulting fuel shortages, linked to the lack of foreign currency for imports.

In this context, DS 5503 establishes a new regulatory framework aimed at stabilizing fuel and energy prices. The main measures are summarized below.

Natural gas price

DS 5503 provides that the City Gate price of natural gas for distribution through networks may not exceed USD 0.98/Mpc, except for volumes corresponding to Natural Gas for Vehicles (GNV) users. The City Gate is the point that separates the transportation system from the distribution system.

For GNV users, the City Gate price may not exceed 50% of the minimum export price of natural gas at the metering point applicable to GNV, plus the prevailing domestic pipeline transportation tariff. The City Gate price for GNV users is the price at which YPFB sells natural gas to the distribution company and will be published quarterly by the National Hydrocarbons Agency (ANH).

Transitional pricing regime for Natural Gas for Vehicles (GNV)

DS 5503 sets the final retail price for GNV at BOB 2.73 per m³ for a transitional period of six (6) months from publication. After that period, the price will be determined under the Vehicular Natural Gas Pricing Regime, under which the final price may not exceed 50% of the price of regular gasoline.

During the transitional period, the retail margin for GNV sales is set at BOB 1.0247 per m³ (VAT included).

Stabilization of prices for refined petroleum products

Except for Liquefied Petroleum Gas (LPG/GLP), DS 5503 sets final consumer prices for refined petroleum products for a six (6) month transitional period, as follows (new price vs. prior price):

 

Product New Price under SD 5503 (BOB/L) Previous Price (BOB/L)
Regular gasoline 6.96 3.74
Diesel 9.80 3,72
Premium gasoline 11.00 4.79
Aviation gasoline 10.57 4.57
Kerosene 5.64 2.72
Jet fuel 10.74 2.74
Gas oil 5.69 1.10
LPG (GLP): 2.25 (BOB/kg) 2.25 (BOB/kg)

Once the transitional period ends, final consumer prices will be determined under the Regulations on Prices for Petroleum Derivative Products.

Private purchase of petroleum-derived products at pre-terminal price

The Decree authorizes private sector individuals and entities to purchase petroleum derivative products at the pre-terminal price (i.e., the price used by refineries for wholesale distributors prior to entry into the storage terminal), provided that they evidence their owned or leased storage capacity.


The Ministry of Hydrocarbons and Energy is expected to regulate a non-discriminatory open-access framework applicable to the entire hydrocarbons infrastructure.

Financing of electricity generation using gas oil in isolated systems

As a result of the increased gas oil price, DS 5503 provides that, on a transitional basis, 60% of the electricity purchase payment made by non-regulated consumers (those with a specific power demand that contract directly with vertically-integrated isolated-system distributors) will be paid directly into the bank accounts of isolated-system distributors that generate electricity with gas oil.

This mechanism will apply until the full amount of the revenue shortfall caused by the new gas oil price is covered, after which the payment will again be allocated to the Wholesale Electricity Market Stabilization Fund (Fondo de Estabilización del MEM).


The Electricity and Nuclear Technology Authority (AETN) will regulate this transitional regime, including calculation mechanisms and monthly publication of the relevant amounts.


Temporary removal of diesel as a controlled substance

Finally, DS 5503 removes diesel from the controlled substances list for one (1) year, as of approval of an ANH administrative resolution regulating import procedures.


This means diesel may be purchased, sold, transported and stored without the additional formalities previously applied by the General Directorate of Controlled Substances (DGSC), thereby facilitating supply and distribution. Diesel remains fully regulated under hydrocarbons legislation, guarantying quality, safety and ANH supervision.

Conclusion

The practical implementation of DS 5503 will require close attention to pending regulatory instruments that are key for operators, investors and market participants.

From a practical standpoint, Title VI of DS 5503 introduces a significant shift in the logic of State intervention in the fuel market, moving toward transitional price stabilization mechanisms and increased private sector participation.
For hydrocarbons and energy sector operators, it will be essential to monitor:

  • the quarterly publication of City Gate natural gas prices by the ANH;
  • the issuance of Ministerial and Administrative Resolutions enabling private purchases of petroleum-derived products at Pre-Terminal prices;
  • the specific regulation governing the financing regime for electricity generation using Gas Oil in Isolated Systems; and
  • the evolution of the exceptional regime applicable to diesel, both in terms of control and customs duties.