Bolivia is between a rock and a hard place over hydrocarbon subsidies
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Loading... - Veronica Vargas
- 28 Apr 2023
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For more than 20 years, the Bolivian State has been buying gasoline and diesel at international prices to sell them in the country with a 50% subsidy.
The government is looking for alternatives to stop this measure, which costs the public coffers more than US$1 billion annually.
A liter of gasoline or diesel costs Bs3.72 (US$0.54) in Bolivia.
Approximately half of this price has been subsidized by the Bolivian state for over two decades, constituting a permanent loss for the local economy.
Former president Evo Morales (2006-2019) recently suggested to his successor in office, Luis Arce, to eliminate this fuel subsidy, which the current president rejected due to the social effects it would have.
On December 26, 2010, Morales instructed to remove this subsidy. Read More..
