December 19, 2025. The National Government has announced the creation of a USD20 million fund to finance the conversion of diesel-powered buses to compressed natural gas (CNG). This measure comes in response to the elimination of subsidies for liquid fuels, amidst a conflict with the urban transport sector, which has suspended its services.
The Vice Minister of Social Defense and Controlled Substances, Ernesto Justiniano, presented this initiative. The main objective is to alleviate the operating costs of transport operators and accelerate the energy transition in the transport sector.
This measure arises as a direct response to the impact of Supreme Decree 5.503. According to Justiniano, “there is a USD20 million allocation that could be used almost immediately to generate a concessional loan for transport operators.”
Currently, the public transport landscape in the capital city of the department of Santa Cruz shows a considerable technological gap that this program aims to close. The total bus fleet is approximately 12.000 units, of which 5.000 already operate on CNG and 7.000 still run on diesel, making them potential beneficiaries of the loan.
The switch to natural gas would not only reduce dependence on imported fuels but also increase the profitability of the service.
