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Brazilian Petrobras Stops Distribution of Gas and Diesel in Bolivia

Petrobras announced that as of July 1st it will no longer be a retail distributor of special and premium gasoline or diesel fuel in Bolivia.

Petrobras has operated as a retail fuel distributor in Bolivia since July 2001 under a temporary five-year contract. It was understood by the company that as of July 2006 the sector would completely be opened to competitive market forces.

However, the newly elected president Evo Morales nationalized the sector on May 1st, and distribution will now be exclusively in the hands of the Bolivian state-run oil company, Yacimientos Petroliferos Fiscales Bolivianos.

In a note Petrobras pointed out that its distribution activities in Bolivia resulted in significant improvements in quality and consumer services.

"Gas stations in Bolivia operated by Petrobras received the ISO 14001 and the OSHAS 18000 certificates," says the note.

ABr

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