Published • loading... • Updated
Bolivia Ends Diesel Subsidy Hours After Congress Clears IMF Loan
The new rate ends a dual-pricing system and is tied to import costs, while gasoline prices remain unchanged.
- On Friday, Bolivian President Rodrigo Paz announced the end of state diesel subsidies, effective Saturday, September 19, 2026. Under Supreme Decree 5716, the unified price rose to Bs17.95 per litre.
- Mounting fuel shortages and chronic subsidies costing about $55 million weekly prompted the shift, as Bolivia imports roughly 90% of its diesel. Paz cited rampant smuggling and black-market reselling as key drivers of the deficit.
- Transport operators and private drivers face an 83 per cent increase from the previous Bs9.80 rate. The administration unveiled targeted relief measures, including direct cash transfers and preferential credit lines to offset the strain.
- The Senate sanctioned a $1.9 billion IMF credit on Friday, providing fiscal clarity. Drivers' leader Juan José Flores Barahona warned that transport fares could reach Bs5, signaling economic pressure on citizens.
- Future diesel prices will now track global benchmarks, fluctuating with import costs rather than fixed rates. While gasoline subsidies remain until January 2027, the government expects the IMF board to vote on October 2, 2026.
Insights by Ground AI
14 Articles
14 Articles
The Bolivian president announced that the fuel will cost the same as the country's cost to buy abroad. The bill comes after Congress approved a $1.9 billion credit from the International Monetary Fund.
·Las Condes, Chile
Read Full Article
Rodrigo Paz Pereira announced the total elimination of the subsidy to this fuel although it remains until the end of the year in gasoline; the credit approved by Congress amounts to US$1.9 billion
·Vicente López, Argentina
Read Full ArticleCoverage Details
Total News Sources14
Leaning Left3Leaning Right3Center3Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
Factuality
To view factuality data please Upgrade to Premium
