Bolivia has raised the price of diesel for large buyers to $1.55 per liter
In Bolivia, the price of diesel fuel for large industrial buyers has risen from 9.80 to 18 bolivianos per liter—approximately from $0.85 to $1.55. The new reference price was set by Decree No. 5676, which ministers announced on August 17, according to The Rio Times.
The increase applies to direct customers and large consumers who purchase approximately 120 liters of diesel per month or more. The publication lists companies in the mining, agriculture, and freight transportation sectors among these consumers. Households, small businesses, and carriers will continue to pay the subsidized price of 9.80 bolivianos per liter.
The price increase amounts to approximately 84%, meaning that for large consumers, the price has nearly doubled. According to the publication, officials explain this move as an effort to bring large buyers’ costs closer to the market price of fuel and to reduce the state’s spending on diesel imports.
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The Rio Times notes that Bolivia imports about 95% of its diesel fuel and faces a shortage of dollars to pay foreign suppliers. The country is gradually phasing out the fuel subsidy system, which has been in place for over two decades. Previously, the price of diesel had already risen from approximately 3.70 to 9.80 bolivianos per liter.
In late July, Bolivia reached a staff-level agreement with the International Monetary Fund on a 36-month Extended Fund Facility program worth approximately $1.9 billion. According to The Rio Times, the price increase for large buyers is in line with the Fund’s policy of reducing subsidies and adopting a more flexible exchange rate. The Ministry of Hydrocarbons is to define the pricing methodology, and the regulator is to publish the daily diesel price for this category of buyers.
