The government of Bolivia's new president, Rodrigo Paz, plans to gradually remove fuel subsidies to prevent their diversion to smuggling and guarantee supply, said Jose Luis Lupo, a member of the president's economic team, on Saturday. «We will lift the subsidy in the best possible way. It will be lifted in an orderly manner, protecting the most vulnerable,» he declared to the media. Lupo, who did not provide details on the measure, pointed out that the subsidy on diesel and gasoline is paid for by the entire Bolivian population, but it does not benefit the country, but rather resale in neighboring markets at higher prices. In Bolivia, the liter of gasoline and diesel has been subsidized by the State for more than two decades, so each liter costs a little over 3.70 bolivianos ($0.54), representing an annual expense of over 2,000 million dollars. The economic advisor explained that the removal of the subsidy is linked to «fiscal consolidation», «reduction of the deficit», «sustainability of the external debt», «financial stability» and, mainly, the supply of fuel. Lupo indicated that the Paz Administration will take economic measures «with a sense of urgency» and «immediately», although he avoided specifying whether they will be gradual or part of an «adjustment shock». He added that the search for the «stability» of the Bolivian economy is not limited to the financial, exchange or price sphere, but is also «social» through «mechanisms to protect the most needy». This expert was part of the delegation that recently accompanied Paz on his visit to the United States, where they held meetings with high-ranking officials of the Donald Trump Administration and executives of multilateral organizations to address the economic crisis the country is going through. Paz became the 74th president of Bolivia on Saturday and receives the country in the midst of an economic crisis marked by a lack of foreign currency, fuel shortages and inflation. In his inauguration speech, he affirmed that the country he receives «is devastated», with the economy «bankrupt» and «a paralyzed state, a bureaucratic monster incapable of serving the people». He also lamented the «endless lines» of vehicles in search of fuel, the «empty markets» and the «salaries that are not enough», referring to the results of the Governments of the Movement for Socialism (MAS) of Evo Morales (2006-2019) and Luis Arce (2020-2025).
