MercoPress. South Atlantic News Agency

Bolivian President ends fuel subsidies, raises minimum wage

Paz has blamed the previous administrations of Evo Morales and Luis Arce Catacora for “20 years of looting and waste”

Bolivian President Rodrigo Paz Pereira has announced a drastic economic overhaul, declaring a state of “economic, financial, energetic, and social emergency,” which includes ending fuel subsidies that have been in place for over 20 years and implementing a significant increase in the minimum wage to offset the resulting inflation.

He described the move as a “historic decision to rescue the fatherland” that will allow the government to “act fast, coordinate the State, and take firm actions to stabilize the economy, protect Bolivian families, and grow by producing.”

For two decades, Bolivia maintained a fixed fuel price of approximately $0.53 USD per liter, costing the state over US$2 billion annually. Paz insisted the country could no longer operate “with norms of the last 20 years.” He added that “Bolivians know that we have to be honest with ourselves regarding hydrocarbons.”

Hence, the new fuel prices are as follows: Special Gasoline US$1 per liter, Premium Gasoline US$1.58 per liter, Diesel US$1.40 per liter. In the case of cooking gas, prices remained unchanged to protect household budgets.

Additionally, the government is raising the national minimum wage starting January 2, 2026, from US$395 to US$474, while implementing enhanced social safety nets.

Paz took office on November 8, 2025, inheriting an economy struggling with a severe shortage of US dollars, chronic fuel shortages, and rising inflation. He blamed the previous administrations of Evo Morales and Luis Arce Catacora for ”20 years of looting and waste,“ claiming this decree is necessary to clean up a ”sewer of extraordinary dimensions.”

To further stabilize the energy sector, the government has also removed diesel from the list of controlled substances to make private importation easier for the agro-industrial and transport sectors.