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Bolivia Faces General Strike as Paz Holds Line on Fuel Subsidy Repeal

The government argues the rollback will save about $3.5 billion to stabilize an economy facing high inflation.

Overview

  • The first day of a national strike called by the Central Obrera Boliviana brought a large miners' march in La Paz, road blockades in six of nine regions, and police cordons around the central government square.
  • Weekend talks produced accords with many transport unions, limiting disruption in several cities, though urban service in Santa Cruz was scarce.
  • President Rodrigo Paz reaffirmed that Decree 5503 will not be changed, saying the measure saves roughly $10 million per day and targets fuel smuggling.
  • The decree set new pump prices at 6.96 bolivianos per liter for regular gasoline, 11 for premium, and 9.80 for diesel, with some reports indicating the scheme will run for six months.
  • Offsetting steps include a 20% minimum-wage increase, tariff relief on transport auto parts, faster fuel supply commitments, and continued social bonuses, with the reforms drawing support from business groups and the U.S. government.