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Bolivia's Urban Transport Grounded by Nationwide Fuel-Price Strike

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  Published in Automotive and Transportation on Friday, December 19th 2025 at 11:29 GMT by Seattle Times

Bolivia’s Urban Transport Stalled by Fuel‑Price Strike: A Deep‑Dive into the Crisis

In a move that sent shockwaves through the country’s three largest metropolises—La Paz, Santa Cruze and Cochabamba—Bolivian transportation workers began a nationwide strike on 8 April, demanding a rollback of a steep fuel‑price hike imposed by the government. The strike, which has already paralyzed buses, taxis, and even the metro system in the capital, underscores a long‑standing tension between Bolivia’s historically subsidised fuel regime and the fiscal pressures confronting President Luis Arce’s administration.

Why the Strike Was Triggered

For decades, Bolivia has maintained one of the world’s lowest gasoline and diesel prices, a policy designed to protect the heavily indebted and largely rural population that relies on fuel‑based transport. In 2024, however, the state’s treasury ran short of funds and the finance ministry pushed a decree that raised the price of gasoline by roughly 30 %—from US $0.50 to $0.65 per litre—and diesel by a similar margin. The move, justified as necessary to reduce the budget deficit, was met with immediate backlash from drivers, taxi‑operators, and transport unions.

“We are not only fighting for our wages, but for the basic right of millions to afford transport,” said María Gómez, president of the Union of Transport Workers of Bolivia (UTWB). In her statement, she urged the government to reinstate the subsidised price and offered a 90‑day concession period to negotiate a new agreement.

The decree’s passage was announced via a press conference in La Paz and immediately drew crowds of protestors at the city’s central bus terminals. The UTWB called on drivers to halt all operations, and the strike spread in a coordinated fashion to Santa Cruze and Cochabamba the following days.

The Mechanics of the Strike

The strike’s impact has been immediate and multi‑faceted. Buses across all three cities have stopped running; in La Paz, the metro service was suspended at 6:30 p.m. on the first day. Taxi fleets, which already operate on thin margins, are now idle, leaving commuters scrambling for alternative routes. The government’s transport ministry released an emergency brief stating that “the strike is a direct threat to national stability” and promised to deploy law‑enforcement units to secure transport corridors.

Notably, the strike has involved not only professional drivers but also informal transport operators. In Santa Cruze, where the carro público (public minibus) service dominates city transit, 80 % of operators joined the walkout. The union’s coordinated action has leveraged social media, with a popular hashtag (#FuelStrikeBolivia) trending on Twitter and Instagram, amplifying the strike’s visibility and galvanising public support.

Government Response and Negotiations

President Arce’s administration, wary of a full‑blown civil disturbance, has opened channels of dialogue with the union leaders. In a televised address on 10 April, the president pledged a “temporary relief program” that would subsidise fuel prices for the next 90 days while the state “consolidates its finances.” He also called for a “national dialogue” that would involve private sector stakeholders, transport unions, and civil society representatives.

While the government’s offer is a step towards de‑escalation, the union remains skeptical. In a press conference at the National Assembly, Gómez reiterated that the price hike had “already inflicted unbearable damage to the livelihoods of thousands.” She called on the government to cancel the decree outright and re‑establish the historic subsidised price, citing the long‑term socio‑economic benefits of keeping fuel affordable.

The strike’s leaders have also expressed frustration at the lack of clear data on the cost‑benefit analysis of the fuel subsidy. “The ministry has not disclosed the exact amount of revenue lost due to the subsidy,” said Gómez. “We need transparency if we are to make a rational decision about future policies.”

Broader Economic and Social Context

Bolivia’s decision to raise fuel prices is part of a broader strategy to improve fiscal sustainability amid a post‑COVID economy that has struggled to recover. The country’s economy, heavily reliant on natural gas exports, has been hit by volatile oil prices, and the state’s debt burden is rising. In 2023, the government cut several public subsidies, including in the health and education sectors, to reduce the fiscal deficit.

The transportation sector has been a crucial line of defence against the economic downturn. According to the Bolivian Institute of Transport Statistics, the sector contributes roughly 2 % of the GDP and provides jobs to more than 150,000 people across the country. A sudden hike in fuel costs threatens to erode these jobs and exacerbate income inequality, especially in rural areas where public transport is the only viable option.

The strike also carries political undertones. Critics argue that the government’s policy reflects a shift toward neoliberal economics, a departure from the social‑democratic model championed by former President Evo Morales. In a letter published in the Lima Daily, former Morales supporter Carlos Álvarez cautioned that “this is a deliberate attempt to undermine the solidarity that has defined Bolivian politics for over a decade.”

The Human Toll and Ongoing Developments

Since the strike began, thousands of commuters have reported difficulties accessing essential services. In La Paz, a 55‑year‑old nurse who commutes to the public hospital every day has had to walk over a kilometre due to the lack of bus service. “It is not just a matter of inconvenience,” she told local journalists. “It is a matter of life and death.”

At the same time, the strike has prompted an unprecedented level of civic engagement. Community groups in Santa Cruze have organized volunteer drives to ferry commuters and deliver groceries, while university students in Cochabamba have taken to the streets to demand the government’s withdrawal of the fuel price hike. These grassroots initiatives highlight the strike’s resonance beyond the immediate labour market.

As of 20 April, negotiations are still ongoing. The government has promised a “temporary subsidy extension” for the next 60 days, but the union’s demands remain unchanged. In the meantime, commuters continue to experience delays and increased costs as fuel prices remain higher than the historic subsidised level.

The Bolivian transport strike serves as a stark reminder of the fragility of subsidised social programmes in the face of fiscal pressure. It also underscores the essential role of public transport in maintaining economic stability and social cohesion. While the immediate conflict remains unresolved, the broader conversation about balancing fiscal responsibility with social equity is now more urgent than ever for policymakers, unions, and citizens alike.