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Bolivia and Argentina face rising costs amid subsidy reductions
Bolivia is facing significant economic disruptions following the removal of diesel subsidies. The Autoridad de Regulación y Fiscalización de Telecomunicaciones y Transportes (ATT) has reported irregular interdepartmental transport fare hikes of up to 80% in Cochabamba and between 30% and 40% in La Paz. These unauthorized increases are attributed to rising operational costs driven by higher diesel prices.
Local authorities and municipal associations are warning of budget deficits. The Federación de Asociaciones Municipales de Bolivia (FAM) is seeking government compensation to offset increased operational costs, while regional leaders estimate that infrastructure projects could see cost increases of up to 30%. Additionally, the removal of the subsidy has reportedly left a $1.5 billion debt to suppliers.
In Argentina, the government is planning further increases in electricity, gas, and public transport tariffs through 2027. This strategy aims to reduce public subsidy spending by approximately $800 million, targeting a reduction in the subsidy-to-GDP ratio from 0.64% in 2026 to 0.53% in 2027. The approach focuses on targeting state aid to the most vulnerable half of the population to mitigate the impact on the general public.
Entities
ANTAC · Argentina · Asociación Nacional de Transportistas · Autoridad de Regulación y Fiscalización de Telecomunicaciones y Transportes · Bolivia · Carlos Alberto Ágreda · Cochabamba · David Estévez García · Instituto Interdisciplinario de Economía Política · La Paz · Luis Caputo · Santa Cruz
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The removal of the diesel subsidy increased fuel prices from Bs 9.80 to Bs 17.95 per liter.
- [○ 1 SOURCE] The elimination of the diesel subsidy has created a debt of approximately $1.5 billion owed to suppliers. lapatria.bo
- [○ 1 SOURCE] An IMF loan of $1.9 billion is reportedly conditioned on the elimination of the fuel subsidy. lapatria.bo
- [○ 1 SOURCE] Former President Jorge Quiroga attributed the economic crisis to the mismanagement of gas and dollar reserves by the MAS administration.
- [○ 1 SOURCE] Infrastructure project costs could increase by up to 30% due to the rise in diesel prices. www.la-epoca.com.bo
- [○ 1 SOURCE] Fare increases between 20% and 25% were detected in Sucre.
- [○ 1 SOURCE] Fare increases between 30% and 40% were detected in La Paz.
- [DISPUTED] The ATT has not authorized any increase in transport tariffs.
- [○ 1 SOURCE] Fare increases of approximately 40% were detected in Santa Cruz.
- [○ 1 SOURCE] Fare increases between 10% and 20% were detected in Tarija.
- [DISPUTED] Irregular fare increases of up to 80% have been reported in Cochabamba.
- [○ 1 SOURCE] Interdepartmental passenger numbers have decreased by up to 50% following the removal of diesel subsidies.