The strike has been maintained despite government efforts to negotiate with some sectors, including transport unions in Cochabamba and Santa Cruz, which partially suspended their participation. However, the COB and most affiliated organizations remain intransigent, demanding full abrogation of the decree citing its harmful socioeconomic impacts and the risk of foreign transnational companies gaining control over natural resources under expedited contract approvals embedded in the decree.
Government officials defend the decree as a necessary fiscal adjustment to halt unsustainable public expenditures, which reportedly reached $60 million per week subsidizing imported fuels amid declining local production and elevated contraband losses. Complementary measures include a 20% increase in the national minimum wage and tax reliefs for vulnerable groups, but these have failed to ease tensions. Enforcement actions by state security forces, including use of tear gas against protesters near government buildings in La Paz, have drawn criticism but not hindered mobilizations. The strike’s continuation threatens prolonged economic disruption, affecting Bolivia’s transport sector, mining production, and rural commerce. The upcoming weeks will test the government’s capacity to reach consensus or face expanded social upheaval amid economic contraction risks and political instability.
This developing scenario underscores mounting challenges in Bolivia’s efforts to reform subsidy policies without provoking extensive social backlash and signals heightened conflict risk for stakeholders operating in the Bolivian fuel and transport sectors.
This article was curated and published as part of our South American energy market coverage.
