Bolivia Raises Subsidized Diesel Allowance for Small Producers After Protests
Translated from Spanish and summarized by DistantNews. Read the original for the full story.
At a glance
- Bolivia raised the subsidized diesel allowance for small agricultural producers from 120 to 2,500 liters per month while farmers protested in Santa Cruz.
- Defense Minister Ernesto Justiniano said eligible producers would continue paying 9.80 bolivianos per liter, compared with 18 bolivianos for large consumers.
- The government said the measure addressed a major complaint and urged protesters to end their road blockades, while producer and transport groups continued opposing the broader subsidy changes.
Bolivia’s government has sharply increased the amount of diesel that small agricultural producers can buy at the subsidized price, from 120 to 2,500 liters a month. The move came as farmers in eastern Santa Cruz blocked roads for 24 hours.
Defense Minister Ernesto Justiniano announced Decree 5698, saying small producers would continue to pay 9.80 bolivianos, or about $0.79, per liter for their productive activities. He said small farmers should not be treated as large consumers, who face a price of 18 bolivianos, about $1.46, per liter under a separate decree issued in August.
Justiniano identified the diesel allowance as one of the main concerns raised by small producers in Yapacaní, San Julián and Cuatro Cañadas. He said he would travel to Cuatro Cañadas that night to meet the mobilized farmers directly and argued that the new measure should lead them to withdraw their pressure campaign.
Small producers should not be considered large consumers.
The new decree bars beneficiaries from transferring the subsidized diesel to anyone else. Those who do so will lose the benefit. The government introduced the higher price for industries, companies and other large consumers on August 17, citing fuel supply problems and long lines at service stations. Public transport operators and private users consuming less than 5,000 liters a month remain eligible for the 9.80-boliviano price.
Agribusiness groups, producers and transport operators have demanded that the August decree be repealed and have threatened further mobilization despite a state of exception in force since June. Supporters of former President Evo Morales also warned of protests and planned a march in Cochabamba. The government has said the subsidy withdrawal formed part of conditions set by the International Monetary Fund for a $1.9 billion financing program.
They will continue accessing diesel at the price of 9.80 bolivianos and may purchase up to 2,500 liters per month for their productive activity.
Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.