Bolivia Ends 20 Years of Cheap Diesel: What the 83% Price Rise Means for Expats
BOLIVIA · ECONOMY & FUEL POLICY Key Facts —The headline Supreme Decree 5716, approved on Friday 18 September and in force since Saturday 19 September, raised the retail price of diesel in Bolivia from Bs9.80 to Bs17.95 per litre including VAT — a rise of about 83%, from roughly US$0.89 to US$1.63 per litre. —The […] The post Bolivia Ends 20 Years of Cheap Diesel: What the 83% Price Rise Means for…
After more than two decades of some of the cheapest diesel in the Americas, Bolivia has raised the retail price by approximately 83%, from Bs9.80 (about US$0.89) to Bs17.95 (about US$1.63) per litre. The immediate impact on expats is relatively modest; however, the indirect consequences through bus fares and food prices remain uncertain.
Supreme Decree 5716, approved on September 18 and effective September 19, sets the retail diesel price at Bs17.95 per litre including VAT, up from Bs9.80, marking an increase of about 83%. This repeal replaces two temporary measures from the past five weeks. Instead of maintaining a fixed price, the decree ties diesel to the Argus ULSD Colonial 62 international reference, with a band of plus or minus 5%.
The reference price, calculated on business days, allows the ministry responsible to publish the governing regulation within five working days. Consequently, the pump price can fluctuate upwards or downwards, diverging from the previous fixed-price regime. Additionally, the decree sets a 0% import tariff on certain gasoline imports until December 31, 2027, and extends a flex-fuel incentive until April 30, 2030, aiming at private-sector supply that the subsidy system had stifled.
Bolivia's fuel subsidies cost the state around US$55 million weekly, funded by dollars the central bank is increasingly lacking. The timing is strategic, following the Senate's approval of a US$1.9 billion IMF credit; the government anticipates the IMF board to vote on October 2. Fuel-subsidy reform serves as a fiscal signal for the IMF program, and the government frames the decree as part of stabilizing public finances.
For expats driving, the change translates to a 40-litre tank costing Bs718, approximately US$65, up from Bs392, about US$36. Transport unions have not announced fare adjustments as of Sunday, so any verified figures will be more significant than predictions. Monitor bus fares and market prices over the next two weeks instead of assuming the worst on day one.
The decree's 5% band allows the price to fall as well as rise, potentially reversing the upward trend. Bolivia's fuel subsidies have existed for over two decades, supporting the economic model under the MAS governments, but they also led to fiscal spending inflation, smuggling to neighboring countries, and a refining and import structure reliant on state dollars.
President Rodrigo Paz, elected on October 19, 2025, with 54.5% of the vote, took office on November 8, 2025, pledging to phase out the subsidy era. The first cuts were implemented in December 2025; the August and September decrees now repealed were interim measures. The first item to monitor is the ministry's regulation governing the band, due within five working days of the decree; the initial daily recalculations of the reference price, revealing whether the band moves; and the expected IMF board vote around October 2.
Locally, the open question revolves around transport fares, with the initial union announcements setting the tone for how the increase affects the population. For a broader perspective, refer to our daily guide for Sunday, September 20.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
