LatinNews Daily - 18 December 2025

*Bolivia’s President Rodrigo Paz has announced the end of fuel subsidies and a 20% hike to the minimum wage, during a speech in which he declared an “economic and social emergency”. Paz said that the revocation of fuel subsidies was aimed at “protecting the pockets of the people and providing certainty regarding energy and fuel, with clear prices and guaranteed supply”. He said that new fuel prices will be published in a presidential decree. The lifting of subsidies, Paz said, would facilitate diesel imports and would see diesel removed from the list of controlled products, ensuring a reliable supply for the transport, manufacturing, and agricultural sectors. “The removal of subsidies which were badly designed in the past does not mean abandonment, it means order, justice, and… redistribution,” claiming that subsidies had facilitated corruption by previous governments. An end to the subsidies is widely viewed as an essential step towards restoring stability in Bolivia’s strained public finances; in the 2025 budget, fuel subsidies were costed at US$2.9bn, or 4% of GDP, and Paz made no secret of his plan to scrap them. Nevertheless, terminating the subsidies is a risky move. Former president Evo Morales (2006-2019) attempted to do so in 2010 but backed down amid fierce protests. In an attempt to soften the blow, Paz announced that the minimum wage will increase by 20% from January to B$3,300 (US$478) per month.

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