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Bolivia ends diesel subsidies following $1.9 billion IMF loan approval FAST-MOVING
Bolivia has implemented a major economic shift following the Congressional approval of a $1.9 billion loan from the International Monetary Fund (IMF). As part of the stabilization program, President Rodrigo Paz announced the immediate removal of diesel subsidies, raising the price per liter from 9.80 to 17.95 bolivianos to align with international market rates.
The government intends to phase out all fuel subsidies by 2027. To mitigate the impact on the population, the administration has announced social bonuses, including a $55 payment for approximately 2.9 million people in precarious situations, alongside tax exemptions for agriculture and low-interest credits for the transport sector.
The decision has triggered significant social tension. Labor unions, including the Central Obrera Boliviana (COB), and transport federations have declared states of emergency, warning of potential strikes and road blockades. The industry has also expressed concern, with the Bolivian Chamber of Hydrocarbons and Energy (CBHE) warning that the energy sector is in a deep crisis and requires urgent regulatory reform and investment to survive.
Entities
Bolivia · Central Obrera Boliviana · César Dockweiler · International Monetary Fund · Marco Rubio · Rodrigo Paz · YPFB
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Mayor of La Paz requested government compensation to offset the impact on municipal services.
- [○ 1 SOURCE] Tanker drivers agreed to continue hauling fuel following talks with government officials in Santa Cruz. www.riotimesonline.com
- [● 3 SOURCES] The price of diesel has increased from 9.80 bolivianos to 17.95 bolivianos per liter. www.riotimesonline.com
- [○ 1 SOURCE] The Tarija Departmental Government warned of a significant financial impact due to higher fuel costs.
- [● 2 SOURCES] The government has decided that diesel will cost the same as the international purchase price. www.europesays.com · eldiarionica.com
- [● 6 SOURCES] The removal of the diesel subsidy follows a $1.9 billion loan agreement with the IMF. www.europesays.com · www.bolivia.com · vilasradio.cl · gacetamexicana.com
- [● 5 SOURCES] Transport unions announced a strike and threatened road blockades in response to the price hike. vilasradio.cl · www.riotimesonline.com · eldiarionica.com
- [● 3 SOURCES] The government plans to end all fuel subsidies by 2027. www.europesays.com · www.bolivia.com
- [● 5 SOURCES] The law approves a loan from the IMF for 1,369 million Special Drawing Rights (SDR), approximately US$1.9 billion. www.bolivia.com · www.europesays.com
- [● 3 SOURCES] The financing will be executed through the IMF's Extended Fund Facility (EFF).
- [● 3 SOURCES] U.S. Secretary of State Marco Rubio expressed support for Bolivia's IMF program during a meeting with President Paz. www.bolivia.com · asuntoscentrales.com
- [● 2 SOURCES] The repayment period for the credit is up to 10 years.