Bolivia Diesel Price Jumps 83% as Last Fuel Subsidy Ends
Diesel costs rise to Bs17.95 per liter in Bolivia following the end of subsidies, hours after the Senate approved an IMF loan.
Key points
- Bolivia increased diesel prices by 83% to 17.95 bolivianos per liter after ending fuel subsidies.
- The Senate approved a 1.9 billion dollar IMF loan, with a final vote expected on October 2.
- Labor unions rejected the deal, and a truce with transport unions expires on October 10.
Bolivia’s diesel price rose to 17.95 bolivianos per liter on Saturday. This represents an 83% increase from the previous subsidized rate of 9.80 bolivianos.
President Rodrigo Paz signed the decree hours after the Senate ratified a 1.9 billion dollar IMF loan. The move eliminates the country’s final remaining fuel subsidy.
Direct Impact on Transport Costs
The new pricing formula links local costs to global import prices. Bolivia imports roughly 85% of its diesel, exposing truckers and farmers to immediate volatility.
The government launched an 874 million boliviano cash transfer program for 2.9 million citizens. It also offered 800 million bolivianos in low-interest loans to support affected businesses.
IMF Approval Still Pending
The IMF Executive Board has not yet voted on the agreement. Officials expect a decision around October 2, followed by a 250 million dollar disbursement.
Bolivia aims to unlock 5 billion dollars in additional financing from other lenders. This is the nation’s first multi-year IMF program since 2006.
Labor Unions Reject the Deal
The Bolivian Workers’ Central rejected the program, citing increased living costs for families. A truce with transport unions expires on October 10, raising blockade risks.
Gasoline remains subsidized for now, though IMF commitments require its removal by 2027. Congress extended a state of exception for 90 days to manage potential unrest.
