Bolivian Farmers Denounce Diesel Price Hike as Discriminatory, Threaten Protests

Bolivia's agricultural sector in Santa Cruz has strongly rejected Supreme Decree 5676, which establishes differentiated diesel prices. Klaus Frerking, president of the Chamber of Agriculture of the East (CAO), announced that they will convene a congress of all productive sectors to coordinate pressure tactics against the government's decision.

Frerking stated that the decree constitutes "discriminatory treatment by the government towards small, medium, and large producers by implementing a differentiated diesel price compared to other economic activities." The CAO argues that this measure does not solve current supply problems or fuel shortages. Instead, they contend that "the application of differentiated prices incentivizes hoarding, speculation, the black market, and corruption, which are the main problems that have caused the current shortages."

Under the new decree, small consumers purchasing diesel at service stations will continue to receive a subsidized price. However, large consumers, including agricultural producers, will have to buy diesel at Bs 18 per liter. The CAO warns that this will directly increase production costs, potentially making many agricultural units unviable and leading to a reduction in the food supply for the Bolivian population. The sector explicitly states it will not be responsible for any resulting food shortages.

The agricultural producers are calling on the government to consider alternative solutions, such as purchasing ethanol from national production paid for in Bolivian currency. They emphasize that the agro-industrial sector only accounts for 16% of national diesel consumption while producing all the food for the country. The CAO plans an extraordinary congress with grassroots producers to determine further actions in defense of their industry.