Protests escalate in Bolivia amid economic crisis and reform demands
Al Jazeera English
Thousands of Bolivian workers, drivers, and teachers protested for a third day, clashing with police in La Paz amid an economic crisis and fuel subsidy cuts. The government's decision to end long-standing fuel subsidies has doubled fuel prices, sparking demands for compensation and reforms. President Paz rejected the protesters' demands for wage hikes and other changes.
The third day of demonstrations in Bolivia saw clashes erupt between protesters and law enforcement. In La Paz, police fired tear gas at workers gathered near the presidential palace, while in El Alto, roads were blocked by buses, cars, and trucks.
Three distinct groups are protesting simultaneously, calling for reforms in agricultural, educational, and labor policies. The Bolivian Workers' Central (COB) called a strike starting last Friday, coinciding with global labor reform demonstrations on International Workers' Day, May 1.
Root cause: fuel subsidy cuts
The crisis stems from President Rodrigo Paz's decision, elected in November 2025, to end decades-old fuel subsidies that had kept gasoline prices at 2006 levels. Specifically, a liter of diesel cost 3.72 bolivianos ($2.06/gallon) and premium gasoline 3.74 bolivianos ($2.05/gallon). After the subsidy cuts, diesel rose to 9.80 bolivianos ($5.40/gallon) and premium gasoline to 6.96 bolivianos ($3.84/gallon).
Transport workers complain they are forced to use lower-quality fuel, leading to engine damage. They demand government compensation for damages, shorter waiting times at gas stations, and road repairs.
Worst economic crisis in 40 years
According to analysis by the think tank Finance for Development Lab, when Paz took office, Bolivia's total debt stood at 95% of GDP, with a prolonged deficit and liquid foreign reserves covering less than one month of imports. To stabilize the economy, the government sought a $3.3 billion financial support package from the International Monetary Fund (IMF) in February. However, inflation remained at 15% in March, down from a peak of 25% last July.
Other demands and government response
In addition to transport workers, teacher unions have joined the protests, demanding a single, state-funded free public education system. The COB has declared an indefinite general strike, with demands including a 20% increase in the minimum wage to 3,300 bolivianos ($477.71/month), pension increases, and salary cuts for government officials.
President Paz rejected these demands, stating in the city of Cochabamba: "If you want wage increases, first create jobs."
According to the Bolivian Highway Association, the strikes and protests have created at least 70 road blockades, paralyzing public transport in major cities such as La Paz, El Alto, Cochabamba, Oruro, and Sucre.
