Bolivia’s new president announced on Wednesday that the country will eliminate its fuel subsidies, ending 20 years of fixed prices under the Latin American nation’s previous leftist leaders.
“With the publication of this decree, the new prices for hydrocarbons will be announced,” President Rodrigo Paz, a pro-business conservative elected in October, said in a televised address while flanked by his ministers.
“Removing poorly designed subsidies from the past does not mean abandonment. It means order, justice, clear redistribution,” Paz added.
The Bolivian government centralises gasoline and diesel imports, purchasing them at international prices and reselling them at a loss.
The country has experienced its worst economic crisis in four decades, as the subsidy policy has drained the treasury’s international dollar reserves.