Rodrigo Paz announces the elimination of the diesel subsidy in Bolivia

Bolivian President Rodrigo Paz announced the complete elimination of the diesel subsidy in Bolivia, transitioning the fuel's pricing to align with the international market starting this Saturday. The move marks a major shift in the country's economic policy, ending a long-standing state support mechanism for the fuel.

To mitigate the economic impact of the subsidy removal, the administration has introduced a series of compensatory measures. Specifically, the approximately 2.62 billion dollars—valued at around 2.26 billion euros—that were previously spent annually on the diesel subsidy will be reallocated to finance social welfare bonuses and credit programs targeted at vulnerable sectors.