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Transport Strikes Paralyze Bolivian Cities After Fuel Subsidies Cut

Officials cast the end of two-decade fuel subsidies as a necessary step to stabilize an overstretched economy.

Overview

  • Bus and taxi stoppages in La Paz, Santa Cruz and El Alto brought traffic to a halt as drivers demanded the reversal of the price hikes.
  • The government declared the subsidy-ending decree non-negotiable and assigned mayors to negotiate urban fare adjustments with transport unions.
  • Fuel prices that took effect this week have doubled bus fares and pushed food costs higher, prompting long lines and market stockpiling.
  • Economic officials cite 22% annual inflation and a 12.5% of GDP fiscal deficit, projecting $3 billion in savings from scrapping the subsidies.
  • The administration touted initial support that includes a $550 million CAF loan and backing from business leaders and the U.S., while a mining union declared an indefinite strike and coca growers led by Evo Morales plan a march to Cochabamba on Monday.