The previous minister, Franklin Molina, had been criticized for his handling of the ongoing issue. Unions and shopkeepers were set to take to the streets later on Monday in the city of Cochabamba to protest shortages of hard currency and petrol at the pumps.
"There is still much work to be done," Arce said in a live message after also swapping out the nation's labor and rural development ministers. "Each change represents an opportunity to resolve several problems we're facing."
Arce's government is dealing with an energy crunch linked to years of declining oil and gas production, that has hit exports and the country's main source of foreign currency. Protests against regular diesel shortages have become common since the start of this year.
Landlocked Bolivia imports half of the gasoline needed to meet domestic demand, costing some $800 million annually, and as much as 80% of diesel supplies.
The president has previously said he would address shortages through fresh supplies shipped from Russia, and state firm YPFB is investing heavily in a newly discovered natural gas "mega field."
"We're aiming to reduce dependence on imported fuels by taking actions which allow us to diversify our options," Gallardo said alongside Arce on Monday.
