YPF u-turned last week on a lubricant price hike in Bolivia under pressure from a number of local transport associations.
Bolivia is in the midst of an economic meltdown due a shortage of U.S. dollars upon which it is dependent. A failed coup, suspected by many to be fake, exacerbated the turmoil. The price of imported finished products and feedstock are soaring as a result.
Last week, YPF announced an increase of 12% on domestically produced lubricants, but reversed its decision after outrage from transport unions.
“As public transport in Cochabamba and with all institutional firmness, we strongly reject and will not accept that YPFB increases the price of lubricant oil by even a single cent,” said José Orellana, head of the Transport Federation. “That would be accepting that the authorities of the Ministry of Hydrocarbons ignore what is happening with the economy of the poorest sectors and transport in particular.”
The country’s transportation sector is already suffering from an increase in spare parts prices, and the attempt by the national energy company to raise lube prices was a last straw for Bolivia’s transportation unions.
Head of the Free Transport Federation Mario Ramos threatened industrial action if the government failed to control the market for auto parts and lubricants. If they are not listened to, “they will not hesitate to take measures,” said Ramos.
The president of taxi union Aramco, Mauricio Leoni, warned that if lubricant prices rise, fares will rise too.