Paz Eliminates Diesel Subsidy Entirely via Decree 5716; Price Jumps 83%

Hours after Congress ratified the IMF financing deal, President Paz announced in a recorded early-morning message the total elimination of Bolivia's diesel subsidy, effective the next day (Sat., Sep 20) under Supreme Decree 5716. The two-tier pricing set by Decree 5676 (Bs. 9.80/L for transporters and individual consumers, Bs. 18.00/L for large-volume "GRACOS" buyers) was replaced with a single international-reference price of Bs. 17.95/L for all consumers — an increase of roughly 83% for previously subsidized buyers. The government said the subsidy had cost about $55 million per week and fueled cross-border smuggling; Paz said "Se acabó el negocio de los delincuentes, subvención o futuro yo elijo futuro" ("The criminals' business is over — subsidy or future, I choose future"). Compensatory measures announced alongside the decree: an expanded PEPE cash-bonus program reaching roughly 2.9 million recipients (about $79 million) and Bs. 800 million in preferential credit for transport operators and small merchants. A decision on gasoline subsidies was deferred.