Bolivia Keeps Petrol Subsidy Until January Review
Bolivia will not cut electricity or gas subsidies under its IMF deal, the economy minister said, and petrol stays subsidised until a January review. The post Bolivia Keeps Petrol Subsidy Until January Review appeared first on The Rio Times .
Bolivia's government announced on October 9 that it will maintain its petrol subsidy until January, when the country will review the measure under an International Monetary Fund (IMF) programme. Economy Minister Christian Morales ruled out lifting the subsidy on petrol for the remainder of 2026. The IMF's Extended Fund Facility agreement, approved by the IMF Executive Board on October 2, aims for full alignment of retail fuel prices with international prices by early 2027.
The government raised the petrol price to Bs 6.96 a litre (approximately $0.59 per litre) in December 2025, which is about half the average US price of $4.37 per gallon, according to the central bank's official rate. The subsidy on diesel has already been removed, and the process for petrol is now underway. The government plans to evaluate the petrol subsidy on January 1, 2027, though it has not confirmed if prices will rise on that date.
The subsidy helps protect vulnerable groups, including poorer households, through cash transfers and a trust fund. The government will consult with economic groups to determine the specifics of petrol pricing in 2027, but the decision may be subject to IMF review.
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