President Rodrigo Paz announced Bolivia will end its national diesel subsidy and
move to a unified price equal to the foreign acquisition cost to address chronic
fuel shortages. Bolivia imports about 90% of its diesel; the government has been
spending roughly $55m a week on subsidies. The change takes effect today and
replaces August’s dual-track pricing (18 bolivianos/liter for high-consumption
users — about $2.60 — and a subsidized 9.80 bolivianos/liter for others).
Officials cited rampant fuel smuggling and black‑market resale as primary
drivers of the weekly losses. The government said domestic prices will follow
global benchmarks and fall if international costs decline, and announced
targeted relief measures, including direct cash transfers and concessional
credit lines for households and key economic sectors.
