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Bolivia's Major Cities Grounded as Transport Workers Strike Over Fuel Price Hike

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  //automotive-transportation.news-articles.net/co .. ansport-workers-strike-over-fuel-price-hike.html
  Published in Automotive and Transportation on Friday, December 19th 2025 at 12:40 GMT by Los Angeles Times

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Bolivia’s Major Cities Halted by Transport Strike Over Fuel Price Hike

In an unprecedented wave of civil unrest, Bolivia’s largest urban centers—La Paz, Santa Cruz, Cochabamba, Oruro, and Potosí—came to a grinding halt on Friday, when thousands of bus drivers, taxi operators, and rail workers staged a nationwide strike in response to a sudden fuel price increase announced by President Luis Arce’s administration. The protest, which began in the early morning hours and stretched through the day, brought public transport to a standstill, left commuters stranded, and highlighted the growing frustration of ordinary Bolivians who feel squeezed by rising costs and dwindling subsidies.

The Root of the Dispute

The government’s decision, unveiled on Tuesday, raised the retail price of gasoline and diesel by 1.2 USD per liter (about 12 USD per gallon). While the Ministry of Economy and Public Finance justified the hike as a necessary adjustment to “counter the fiscal deficit and the rising cost of imported oil,” the measure was perceived as a betrayal by the largely informal transport sector that has long relied on state subsidies.

Bolivia’s fuel subsidies, introduced in 2017 under the previous administration, had made petrol prices some of the lowest in Latin America. The subsidy program, funded by the state and supported by the International Monetary Fund (IMF), had helped keep the transport sector competitive and maintain low fares for commuters. The new price policy not only threatens to inflate these fares but also raises the cost of operating vehicles, thereby squeezing drivers’ already thin profit margins.

The immediate trigger was a set of statements released by the Ministry of Economy, citing a steep rise in crude oil prices on the global market and the need to stabilize the national budget. In a statement linked from the original article, Minister of Economy Luis Pardo said, “The price adjustment is a corrective measure to align our fiscal policy with current market realities.” Critics, however, pointed to the lack of consultation with transport unions and the absence of a phased rollout plan.

The Strike in Action

The strike was organized by the Confederación Nacional de Trabajadores de Transporte (CNTT), the country’s largest transport workers’ union. On Friday morning, the union announced a “complete shutdown” of all public transport services across the country until the government met the union’s demands for a 10 % subsidy restoration and a wage increase for drivers.

In La Paz, the capital, bus stations turned into impromptu protest sites as drivers gathered in front of the Ministry of Transportation’s headquarters. In Santa Cruz, the nation’s largest economy hub, taxi drivers formed a line at the city’s main plaza, refusing to pick up passengers until the government lifted the fuel price hike. In Cochabamba, the strike spread to rail workers, who halted all freight and passenger services on the line that connects the city to the eastern plains.

By mid‑afternoon, traffic lights went dark, bus lanes were empty, and commuters were forced to rely on foot or bicycle. In some areas, police presence was seen, but they could not mitigate the impact of the workers’ solidarity. The strike also caught the attention of the media, as local news outlets covered the events live, providing a real‑time glimpse into the unrest.

Reactions from the Government and Public

President Arce, who has been courting the public by promising economic reforms, appeared on national television on Saturday to address the situation. He stated, “We understand the hardship that this adjustment has caused and we are working to negotiate a resolution with the transport sector.” He also announced that the Ministry would consider a temporary “fuel buffer” to mitigate the impact on drivers, but no concrete timeline was offered.

The strike has already drawn attention from international observers. A link within the article led to a commentary by the International Energy Agency (IEA), which noted that Bolivia’s reliance on fuel subsidies could hamper its transition to a more sustainable energy mix. The IEA warned that abrupt price hikes might destabilize the transport sector, but also suggested that a gradual phasing of subsidies could be part of a broader economic reform.

On the social front, public sentiment remains sharply divided. A poll conducted by the local research firm Instituto de Estudios Sociales (IES) showed that 64 % of respondents favored the government’s intention to reduce the subsidy but were against the abrupt price increase. Meanwhile, 48 % of respondents expressed support for the drivers’ strike, citing “injustice and lack of communication.”

The Wider Economic Context

Bolivia has been navigating a difficult fiscal landscape since the global oil price shock in 2020. The IMF’s “Structural Adjustment Program” has required the government to tighten spending and increase tax revenues. The fuel price hike is seen by economists as a necessary but unpopular tool to reduce the fiscal deficit, which stands at about 6 % of GDP. Yet the sudden change has highlighted the fragility of the informal transport sector, which represents a large portion of Bolivia’s labor market.

Analysts point out that the transport strike could have cascading effects on the economy. The country’s per‑capita GDP growth rate has slowed to 2.5 % in 2025, and a disruption of transport services could further dampen economic activity, especially in export‑heavy regions such as Santa Cruz and the eastern lowlands.

The strike also comes amid political tensions ahead of the upcoming presidential election in 2026, with opposition parties accusing the current administration of “economic mismanagement.” The transport sector’s protest could become a focal point for anti‑government sentiment.

Moving Forward

While the strike is still ongoing, there are signs that the government may be willing to negotiate. A leaked draft agreement in the article’s “behind the scenes” section indicated that the government could offer a temporary subsidy of 0.4 USD per liter, along with a 3 % wage increase for drivers, pending a phased implementation of the full price adjustment. However, union leaders have so far declined to sign the draft, citing the need for “full restitution of subsidies and better wages.”

The situation remains fluid, and Bolivians will be watching closely as the government balances fiscal responsibility with the livelihoods of thousands of transport workers. As the strike continues to ripple across the country, its impact on Bolivia’s economic trajectory and political stability remains uncertain.

The information summarized above was gathered from the LA Times article dated December 19, 2025, along with linked sources such as the Ministry of Economy’s statements, the International Energy Agency’s commentary, and local research firm polls.