[REVISION HISTORY]

Bolivian political stability and fuel subsidy unrest

Updated 58 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-22 17:22 UTC → 2026-10-23 12:51 UTC · added ~~removed~~

Bolivian political tensions remain centered on the maintenance of a state of exception and the legal standing of former President Evo Morales. Defense Minister Ernesto Justiniano has called on Morales to face the judiciary to prevent violence, accusing him of attempting to “nationalize sectoral protests” by adding political agendas to social movements. While the government has extended the state of exception to maintain order, regional leaders like Cochabamba Governor Leonardo Loza have rejected the measure, arguing it fails to address fuel shortages and currency volatility. Economic instability has intensified following the administration’s $1.9 billion, 36-month program with the International Monetary Fund (IMF). This austerity plan includes a 30% reduction in central state wages and a fiscal adjustment of approximately 8.5% of GDP through 2029. ~~To mitigate the impact of these reforms, the government introduced the PEPE II program, increased student bonuses, and allocated funds for preferential credits for small producers.~~ A central component of this shift is the elimination of diesel subsidies. Under Supreme Decree 5716, diesel prices rose from Bs 9.80 to Bs 17.95 per liter, an increase of approximately 83 percent. This policy has triggered widespread ~~unrest, including strikes~~ economic consequences. In Cochabamba, families report a significant loss of purchasing power as essential food costs climb. The diesel hike has driven up beef prices by ~~transport unions and the Central Obrera Boliviana (COB). While the government maintains that the move addresses fuel smuggling~~ up to 3 bolivianos per kilo and ~~fiscal burdens, the policy has caused secondary price spikes~~ increased operational costs for ~~Liquefied Petroleum Gas (LPG)~~ the mining sector, such as Emcoisa in ~~rural areas. In response~~ Oruro. Agricultural sectors are also struggling; rice prices have risen to between 500 and 600 bolivianos per quintal, while diesel scarcity is forcing farmers to reduce planting areas, threatening food security. To combat fuel smuggling and speculation, the government has deployed police to escort ~~LPG~~ Liquefied Petroleum Gas (LPG) distribution trucks and has implemented food price ~~controls in Cochabamba.~~ controls.

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