Sunday, January 2, 2011

Bolivia will again raise fuel prices

Strikes and demonstrations were held in Bolivia Thursday, December 30, against rising fuel prices. / DAVID MERCADOLe Bolivian government will again raise fuel prices, after suspending the rise facing a violent social unrest, announced Sunday, January 2nd Vice-President Alvaro Garcia. Mr. Garcia, who did not say when the increase would intervene, argued that Bolivia subsidized imports and fuel consumption (up to $ 360 million per year according to official estimates) and that Part of this fuel was sold smuggled into neighboring countries.

The government had increased a week ago over 80% the prices of petrol and diesel subsidies in order to eliminate and prevent smuggling, but that decision has triggered the largest social protest movement since the arrival to power of President Evo Morales in 2006. The people feared that the increase in fuel will cause a surge in food prices.

"IN CONSULTATION WITH THE PEOPLE" The protest in which 15 people were injured and 21 arrested had forced Morales to reverse and annul the Order up. Bolivia consumes the equivalent of 35,000 barrels of crude per day and produced only 4,500 barrels per day in 2010, the rest is imported from Venezuela and Argentina and sold at subsidized prices.

"In the long term this is not sustainable, "said the vice-president. The government wants to end this "bleeding" for public finances, but the people say when and how, "said Garcia. The increase "will be in consultation with the people, we govern with the people. When is it will happen is the people to decide," said Garcia, who added that the president had social organizations already invited to come and dialogue.

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