The president of Bolivia, Rodrigo Paz, gave in this Sunday to put an end to the first crisis of his Government. Paz announced, surrounded by his Cabinet, the withdrawal of the , which applied an economic adjustment to alleviate the monetary crisis. The rule contemplated the elimination of the gasoline and diesel subsidy, which, however, will be maintained in a new document. The decision comes after different social movements, led by the largest union confederation in the country, the Central Obrera Boliviana (COB). The most recent protest measure was the road blockade. With these sectors, a delegation of Executive ministers held a meeting in the city of El Alto that lasted almost five hours and concluded with the signing of a commitment document, in which those mobilized agreed to give in to the pressures.
Peasant, factory workers, miners and public teachers were present in the dialogue; They called the decree a “sell-out” and rejected it since it was signed on December 17. The end of the fuel subsidy increased the price of gasoline by 86% and that of diesel by 160%, but to stop the fiscal deficit, which closed 2025 with 9.2% of the Gross Domestic Product (GDP). The most criticized articles were those that allowed contracts to be carried out between the State and foreign and national investments in natural resources.
The points that implemented the fast trackan accelerated procedure to approve investment projects, with maximum deadlines of 30 days for public institutions to issue technical licenses, such as environmental licenses, for example. Although the ministers committed to not continue with this method, at least by decree, there were moments of tension in the dialogue before finally accepting the proposal to develop new regulations jointly with the mobilized sectors and lift the pressure measures. A member of the Confederation of Peasant Women Bartolina Sisa disagreed: “The ministers are committing, but the president is the one who promulgates. We will hold out for two more days.” [de presión] until the decree is repealed.”
The Minister of Government, Marco Antonio Oviedo, one of the Executive’s envoys for the dialogue, said that the suggested distrust was “very serious.” “There are hundreds of children at roadblocks without anything to eat; another hundreds of people in El Alto and intermediate cities in the provinces to which food no longer reaches. For four or five companions, are these people going to continue suffering?” he stated. He was accompanied in the delegation by the head of the Economy portfolio, Gabriel Espinoza, and the head of the Presidency, José Luis Lupo.
Finally, the highest authority of , Mario Argollo, took the floor and, after a verbal and joint vote among those present, it was decided to continue with the established terms. “The fight was clear and we have not betrayed them. There are people on the road who are suffering. Union democracy has won here,” he said. Until Sunday, there were more than 60 blocking points on interdepartmental roads, which made land traffic impossible in the so-called central axis of the country, made up of La Paz, Cochabamba and Santa Cruz de la Sierra.
Another point that remains from decree 5503 are the social containment measures to deal with the rise in fuel prices. The basic salary increased by 20% and bonuses aimed at older adults and primary school students in public schools were increased. The period given to the Government to prepare the new regulations is 48 hours.
