Bolivia Eliminates Diesel Subsidy, President Paz Announces New Measures

President Rodrigo Paz of Bolivia announced the elimination of the diesel subsidy, stating that the price will now be equivalent to the international import cost. The decision comes due to the high cost of the subsidy for the state and fuel smuggling. Paz justified the measure by explaining that the state spends close to $us 55 million each week on fuel subsidies, which represents more than $us 2.600 million per year. The President also announced a series of economic measures, including the delivery of the so-called PEPE 2 bonus to nearly 2.9 million people, an increase in the Juancito Pinto bonus, and the elimination of import taxes for goods destined for productive activities.