Bolivia Ends Diesel Subsidy and Sets One International-Market Price

Bolivian President Rodrigo Paz announced the immediate end of the country’s remaining diesel subsidy, setting one nationwide price tied to the international cost of imports for every sector. He said gasoline and other fuels were not included and put the diesel subsidy’s cost at about $55 million a week. The government paired the change with compensation including PEPE II payments for about 2.9 million people, Bs 874 million in funding, and a Juancito Pinto benefit increase from Bs 200 to Bs 300. It also offered up to Bs 800 million in preferential credit at rates near 6%.