Bolivia ends diesel subsidy
Bolivia has ended its diesel subsidy as part of a deal for a multi-million-dollar IMF loan aimed at stabilising the nation’s finances amid an economic cris Read More: https://punchng.com/bolivia-ends-diesel-subsidy/
Bolivia announced on Friday the end of its diesel subsidy after Congress approved a $1.9 billion loan from the International Monetary Fund (IMF) to stabilize the country's finances. The subsidy has been draining the treasury's international dollar reserves, leaving Bolivia with its worst economic crisis in four decades. President Rodrigo Paz stated that diesel will now cost the same as the price paid abroad for the fuel.
The IMF deal requires the government to eliminate all fuel subsidies by 2027. Paz had previously announced the elimination of subsidies in November, raising domestic fuel prices in line with international prices. However, when global oil prices spiked due to the US-Iran war, the government had to absorb the cost difference to prevent fuel shortages.
The recent price hike for diesel for large consumers, such as farmers, sparked protests, but no resumption of mass anti-government protests has been reported.
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