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Bolivia Stands by Fuel Subsidy Repeal as Strikes Spread and Morales Threatens March

The government says the measure is needed to stabilize finances.

Overview

  • Decree 5503 ends the two‑decade fuel subsidy and sets six‑month regulated prices, lifting gasoline to 6.96 bolivianos per liter and diesel to 9.80, increases of roughly 86% and 162% respectively.
  • Officials insist the decree will not be revoked but invite talks, and they struck a limited accord with the Cámara de Transporte and heavy haulers in Santa Cruz to work on tax and customs issues.
  • Transport unions called a general, indefinite strike starting Monday, with the COB and allied sectors joining after protests and blockades in La Paz, El Alto, Santa Cruz and Cochabamba.
  • Evo Morales warned of a march to Cochabamba if the decree is not reversed, escalating political pressure on President Rodrigo Paz.
  • The decree also raises the minimum wage by 20%, and the government cites potential annual savings of about $3.5 billion as it seeks to counter dollar shortages and high inflation, with reports of U.S. support for the reforms.