BOLIVIA - The Bolivian government announced Wednesday it placed state oil company YPFB under temporary supervision over fuel import and distribution failures amid a severe...

supply crisis. Long fuel queues have become common in Bolivia, where President Rodrigo Paz took power last November pledging to end the country's worst economic crisis in decades. A decree dated Tuesday orders YPFB's "extraordinary, transparent and temporary" takeover, potentially lasting up to 180 days. The measure aims to protect state interests and evaluate Bolivia's current fuel import and distribution systems. Paz's office said the move would "restore efficiency, strengthen fuel supply and bring transparency to the logistics chain”. A ministerial commission will oversee the state firm's management. Hydrocarbons Minister Marcelo Blanco acknowledged that "regular measures we had taken didn't work”, blaming the shortage on "logistical shortcomings in YPFB's import and distribution”. The ministry also plans to gradually remove YPFB from fuel marketing so it can focus on extraction, exploration and refining. Last week the government hiked diesel prices from 9.80 to 18 bolivianos (about $1.50) per liter to curb fuel smuggling abroad, which it says worsens shortages. Angry farmers blocked roads in the northeastern Beni department and Santa Cruz, Bolivia's economic hub. This protest tactic defied a state of emergency Paz declared in June to counter mass demonstrations. The US-backed leader took office after decades of socialist rule. His economic salvage efforts - such as scrapping fuel subsidies in December, which doubled prices -have proved unpopular. The subsidy removal drained foreign currency reserves rather than ending gas station lines as promised. Paz is currently negotiating a multibillion-dollar bailout with international lenders. (Bssnews)