Protests and roadblocks in Bolivia against the elimination of gasoline subsidies

Pressure against President Rodrigo Paz to eliminate gasoline subsidies is spreading across Bolivia. Protesters against Decree 5503, which among other things eliminates this subsidy, blocked roads in six of the country's nine departments, according to the Bolivian Highway Administration (ABC). In cities such as La Paz and Cochabamba, demonstrations closed streets, and in Santa Cruz, public transportation entered its fourth day of strikes. President Rodrigo Paz called for dialogue but assured that he will not back down on a measure he considers essential to reducing the fiscal deficit, which exceeds 12% of the Gross Domestic Product (GDP), according to the Central Bank. More than 3,000 miners from the National Federation of Mining Cooperatives of Bolivia marched in the morning from the city of El Alto to the seat of government in La Paz. The march was supported by the Bolivian Workers' Union (COB), the largest trade union confederation in the country. The organization's secretary general, Mario Argollo, assured upon his arrival at the Government Palace that the most vulnerable sectors will be the main victims of the domino effect caused by the rise in fuel prices. "They have to govern for all Bolivians; they removed the tax on large fortunes and gave millionaires a pardon. Businessmen and bankers did not vote for Paz; the vast majority voted for him, and now they are turning their backs on them," he said. Meanwhile, in Cochabamba, a march organized by the Six Federations of Cocaleros del Trópico, whose president is former head of state Evo Morales, arrived at noon. The indigenous leader did not attend the protest, as he is subject to an arrest warrant for failing to appear in court in a human trafficking case, but he was active on social media criticizing another article of the decree issued last Wednesday: “It provides for the total liberalization of exports of corn, sorghum, and other products, without establishing alternative mechanisms to guarantee domestic supply, which may generate greater inflationary pressure on basic foods.” In the same city, factory workers and residents closed streets demanding the repeal of the measure. A work stoppage announced by the Bolivian Drivers' Union Confederation was also expected on Monday, but on Sunday night they reached an agreement with the government. At the meeting, the executive branch called for coordination between drivers and municipal governments on the new public transportation fare. Without state financial support, the price of gasoline rose from $0.54 per liter to $1. However, most of the public transport fleet uses diesel—which rose from $0.50 to $1.40—and natural gas, which now costs $0.39, 64% more than before. Over the weekend, fares rose arbitrarily, doubling in some cases. The same thing happened with tickets for interdepartmental travel. Paz remains firm in his stance not to modify the decree, although he maintains that “everything can be improved”: “The state is a tick on the people . it hurts because you are removing the one that was sucking your blood.” To lessen the social impact of the subsidy removal, the measure includes a 20% increase in the minimum wage, a rise in income for the elderly, and an increase in the Juancito Pinto bonus for primary school students. After the miners' march to the Government Palace, Fencomin held a meeting with the president that lasted for hours and ended in the evening with a seven-point agreement. The government committed to controlling the prices of basic goods and guaranteeing fuel for the mining sector. One of the main criticisms of the law was its “shock” implementation rather than a gradual one, as argued by Vice President Edmand Lara, who is in constant disagreement with Paz: “The lifting of support should have been carried out as our still-battered economy was recovering.” The president responded that “there are no resources to do it gradually”: “I would like to do it progressively to help people and return to normality, but I have no way of doing so. They have left us with a broken country,” he said, referring to the previous government of the Movement Toward Socialism (MAS), which he blames for the crisis. For the president, the “shock” measure was the only way out for an economy in recession until 2027, according to the latest report from the International Monetary Fund (IMF), and whose year-on-year inflation in November was around 20%, according to the National Statistics Institute (INE).