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Bolivia to eliminate fuel subsidies by early 2027 per IMF agreement
The International Monetary Fund (IMF) has detailed an agreement with the Bolivian government to support economic reforms, which includes the complete elimination of fuel subsidies by the beginning of 2027. According to the program, retail fuel prices will be fully aligned with international market prices by that time, in accordance with Supreme Decree 5652.
The transition includes an automatic price-setting mechanism to update domestic fuel values based on sector cost structures. The IMF projects that fuel subsidy spending will decrease from an equivalent of 6.2% of GDP in 2025 to 2.9% in 2026, reaching zero by early 2027. This projection remains subject to fluctuations in exchange rates and international fuel prices.
Adjustments began in December 2025, with gasoline increasing to Bs 6.96 per liter and diesel to Bs 9.80. In August 2026, the government eliminated diesel subsidies and applied reforms to aviation gasoline. The agreement also envisions increased private sector participation in the import and distribution of fuels, allowing private operators to trade at market-determined prices.
Entities
Bolivia · Edmand Lara · International Monetary Fund · Marcelo Blanco
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Bolivia will fully align retail fuel prices with international prices by the beginning of 2027. www.cabildeodigital.com · ahoradigital.net
- [● 2 SOURCES] The government eliminated diesel subsidies in August 2026. www.cabildeodigital.com · ahoradigital.net
- [● 2 SOURCES] Fuel subsidy spending is projected to drop from 6.2% of GDP in 2025 to 2.9% in 2026. www.cabildeodigital.com · ahoradigital.net
- [● 2 SOURCES] The IMF projects fuel subsidy costs will reach zero by the beginning of 2027. www.cabildeodigital.com · ahoradigital.net
- [● 2 SOURCES] The adjustment process included a gasoline price increase to Bs 6.96 per liter in December 2025. www.cabildeodigital.com · ahoradigital.net
- [○ 1 SOURCE] Minister of Hydrocarbons Marcelo Blanco denied an immediate gasoline subsidy removal. boliviaverifica.bo
- [● 2 SOURCES] The reform includes allowing private operators to market fuels at market-determined prices. www.cabildeodigital.com · ahoradigital.net
- [○ 1 SOURCE] Vice President Edmand Lara suggested gasoline subsidies might be lifted immediately due to IMF requirements. boliviaverifica.bo