Bolivia's diesel price hike affects three sectors; government calls it 'price sincerity'

Bolivia's diesel price has increased, affecting three distinct consumer groups, according to Minister of Hydrocarbons Marcelo Blanco. The new policy establishes a reference price of 18 Bolivian pesos (Bs 18) per liter for large consumers, defined as those using over 20,000 liters per month, and for those consuming between 5,000 and 19,900 liters.

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There are three sectors that are being affected. The large consumers are those who consume more than 20 thousand liters per month, (also) there are those who consume from 5,000 to 19,900 liters and there are those who consume from 120 and so liters to one thousand liters. These three groups are being affected.

Consumers using between approximately 120 liters and 1,000 liters per month will also be subject to this higher price. However, the government has stated that prices for other consumers, including private individuals and transport workers, will remain unchanged at Bs 9.80 per liter. This adjustment was formalized through Supreme Decree 5676, allowing Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) and service stations to sell diesel at the new reference price to direct customers and large consumers.

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The decree is very simple, it has no major ambiguities. Everything will continue to operate as it operated, with the only difference being that Gracos and those who consume more than 120 liters, approximately, will pay another price.

Minister Blanco described the measure as a necessary step to "sincere" the price, which he claims has been distorted for two decades. He acknowledged that the "destruction" of the past 20 years cannot be rectified overnight, stating that "things are not going to be solved immediately." Blanco anticipates a transition period, emphasizing that the new mechanism aims to increase the private supply of fuels.

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What they have destroyed in 20 years will not be solved, as many think, in nine months, that is impossible and in that way this (new) mechanism will be implemented that will sincere the price.

Despite the price adjustment, long queues persist at fuel stations. Blanco attributed the current situation to systemic issues, asserting that the country was left "without reserves" and "practically bankrupt" due to past mismanagement. He stated that the current government has the obligation to "reconstruct the homeland."

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The only thing we are doing is sincerando the price, which for so many years was not sincerado. And as a result of that non-sinceramiento is that all the money in this country ran out, they left us without reserves, they left us practically bankrupt and now we have the obligation to reconstruct the homeland.