Daily Archives: Friday, December 31st, 2010

Gasoline prices in Bolivia

Last Sunday the government of President Evo Morales suddenly announced that the fuel prices (gasoline and diesel) would increase with immediate effect. Until then, the fuel was subsidised because of the low wages in Bolivia. This meant that in many border areas fuel was being smuggled into neighboring countries (even on donkeys and llamas) because the prices there are much higher. The argument of the government was that in this way they subsidize the other countries for an amount of $150,000 per year (of the total subsidy of $380,000) – in itself a valid argument. And moreover they need the additional revenues. The prices of gas were not increased.