LA PAZ, Bolivia (AP) 鈥� Tired of gasoline shortages and skyrocketing prices, Sim贸n Huanca took matters into his own hands.
The 53-year-old Indigenous artisan imported a to navigate El Alto, Bolivia鈥檚 highest city, using the vehicle to transport both his family and the alpaca wool for his weaving workshop.
He also installed a dedicated charger in his own garage, mainly for convenience, but also because there are only three public charging stations serving the vast metropolitan area of El Alto and neighboring , home to more than 1.6 million people.
鈥淪ince last year, I鈥檝e been trying to get an electric car to save on costs,鈥� Huanca said while driving his electric off-road vehicle through a working-class neighborhood.
Huanca is one of a small but growing number of Bolivians abandoning their fossil fuel-powered cars for electric vehicles as grapples with fuel shortages and a presidential decree that , effectively doubling the cost of gasoline.
鈥楯unk gasoline’ and the Iran war
Bolivia’s energy supply disruptions worsened in 2023 under then President , who maintained a state subsidy under which the country purchased fuel at international prices and sold it at half its value on the domestic market.
But Bolivia 鈥� which imports 80% of the diesel and 55% of the gasoline it consumes 鈥� gradually ran out of foreign currency to purchase fuel, and the subsidy represented an annual drain of more than $2 billion on the state.
Long lines of vehicles waiting at gas stations became a common sight.
In December 鈥� one month after taking office 鈥� President repealed the subsidy, and energy prices nearly doubled, hitting Bolivians hard.
A few weeks later, transport operators complained that the poor quality of the gasoline was damaging their vehicles. The government alleged sabotage, and Paz said that the gasoline distributed by state-owned oil company Yacimientos Petrol铆feros Fiscales Bolivianos was contaminated with gum and manganese that had remained in the storage tanks since the Arce administration.
The 鈥渏unk gasoline鈥� scandal triggered a wave of strikes and protests among transportation workers and the resignations of two high-ranking officials at the state-owned oil company.
The last straw for many Bolivians was the . Faced with the possibility of yet another rise in fuel prices, some traded in their gasoline-powered cars for electric vehicles.
鈥淭he investment exceeds $36,000, but I no longer waste valuable working hours searching for fuel or managing vehicle repairs,鈥� said Ever Vera, a 54-year-old lawyer.
Electric cars expected to gain broader appeal
The number of electric vehicles in Bolivia climbed from 500 to 3,352 in the last five years, according to the Single Registry for Tax Administration, which compiles data on tax-paying vehicles. The most significant surge was recorded over the last two years, coinciding with the fuel crisis. They still only make up a tiny fraction of the estimated 2.6 million vehicles in the country of almost 12 million people.
The vast majority of these vehicles were imported from China, followed by the United States.
鈥淭he growth is exponential,鈥� said Freddy Koch, an electromobility expert with the independent nonprofit organization Swisscontact. He noted that while these vehicles are being purchased by more affluent buyers, he expects them to gain broader appeal and predicts that the total number of electric vehicles could triple in as little as two to three years.
Paz also eliminated import tariffs on all types of automobiles, a move that has multiplied the number of importers competing with one another to bring these vehicles into Bolivia at a lower cost.
The rising number of electric vehicles has created new opportunities for 38-year-old electrician Marcelo Laura. A month ago, he identified a lucrative niche in the installation of residential and commercial charging stations.
鈥淭here aren鈥檛 many public charging stations,鈥� he said. 鈥淎 year ago, I thought it was practically impossible to think that people would actually be bringing in electric cars.鈥�
___
Follow AP鈥檚 coverage of Latin America and the Caribbean at
Copyright © 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.
