LA PAZ — Bolivian President Rodrigo Paz repealed a long-standing fuel subsidy in December and eliminated import tariffs on all types of automobiles, measures that have coincided with a rise in electric vehicle adoption. Gasoline prices nearly doubled following the repeal of the subsidy, which had represented an annual drain of more than $2 billion on the state.

Bolivia imports 80% of the diesel and 55% of the gasoline it consumes. Under former President Luis Arce, the state subsidy meant the country purchased fuel at international prices and sold it domestically at half its value. Energy supply disruptions worsened in 2023 under Arce, with long lines of vehicles forming at gas stations.

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, with the largest increase recorded over the last two years, coinciding with the fuel crisis. Electric vehicles still represent a fraction of the estimated 2.6 million vehicles in the country. Most were imported from China, followed by the United States.

"The growth is exponential," said Freddy Koch, an electromobility expert, who predicted that the total could triple in two to three years. Some Bolivians have cited concerns over a possible rise in fuel prices linked to the Iran war as a reason for trading gasoline-powered cars for electric vehicles.

The elimination of import tariffs led to an increase in the number of importers competing to bring electric vehicles into Bolivia at a lower cost, though the vehicles are currently being purchased by more affluent buyers. The metropolitan area of El Alto and neighboring La Paz, home to more than 1.6 million people, has three public charging stations.

Electrician Marcelo Laura identified a business niche in installing residential and commercial charging stations. "There aren't many public charging stations," he said. "A year ago, I thought it was practically impossible to think that people would actually be bringing in electric cars," Laura added.