Bolivia’s Fuel Subsidy Cut Sparks 70 Road Blockades and 163% Diesel Price Surge

Context President Rodrigo Paz’s centre‑right government removed a fuel subsidy that had kept diesel at 2006‑level prices. The subsidy cut came amid a currency shortage, a debt burden equal to 95% of GDP and inflation that peaked at 25% last year. Bolivia is seeking $3.3 billion from the International Monetary Fund to shore up reserves.

Key Facts - Diesel price climbed from 3.72 bolivianos (≈$2.06 per gallon) to 9.80 bolivianos (≈$5.40 per gallon). Premium petrol rose from 3.74 bolivianos (≈$2.05 per gallon) to 6.96 bolivianos (≈$3.84 per gallon). - The Bolivia Highway Association reports at least 70 road blockages across the country, halting public transport in La Paz, El Alto, Cochabamba, Oruro and Sucre. - COB Secretary‑General Mario Argollo announced an indefinite general strike, demanding wage hikes, pension increases, compensation for vehicle damage and a reversal of the subsidy removal. - Protesters cite damaged engines from forced use of lower‑quality fuel and demand shorter queues at filling stations and road repairs.

What It Means The price shock threatens to deepen Bolivia’s worst economic crisis in four decades, tightening household budgets and straining the transport sector. With 70 blockades disrupting logistics, the government faces mounting pressure to negotiate with the COB and other unions. A prolonged strike could further erode foreign‑currency reserves and jeopardize IMF assistance. Watch for any concession from President Paz’s administration and the IMF’s response in the coming weeks.