GNV News – January 16, 2026

In Bolivia, where large-scale protests had continued in response to the announcement of the elimination of fuel subsidies, an agreement was reached on January 11, 2026, between the government and labor unions and other groups. Under this agreement, the government withdrew the decree that had been the focus of contention, which included the abolition of fuel subsidies. Following this, the protests that had centered on road blockades over several weeks gradually subsided, and all blockades were lifted by January 13.

This series of developments is closely tied to the policies introduced by Rodrigo Paz, who took office as president in October 2025. Citing the need to curb inflation and secure sufficient foreign currency reserves, Paz introduced policies such as cuts in public spending and tax reductions for the wealthy. As part of these policies, a decree was announced in December that included the elimination of fuel subsidies and, as a compensatory measure, a 20% increase in the minimum wage.

After this announcement, the prices of fuels such as gasoline surged to about 1.6 times their previous levels, and the costs of transportation and daily necessities also rose. Protests demanding the withdrawal of the decree were then organized under the leadership of several civil society organizations, including the Bolivian Workers’ Center (COB), and demonstrators blocked roads at at least 52 locations, mainly in the capital La Paz. The government initially took a hardline stance, but as the protests dragged on, it ended up compromising. Although the decree was withdrawn, the increase in the minimum wage and the elimination of fuel subsidies remain in place. Regarding this point, it is expected that discussions on new measures, including the possible reinstatement of fuel subsidies, will be held with the participation of labor unions and other stakeholders.

Learn more about politics in Bolivia → “Where is a Turbulent Bolivia Heading?”

Learn more about fuel subsidies → “Oil and the World: Is News Coverage Capturing the Trends??”

Premises of Bolivia’s state-owned oil company YPFB (Photo: Portalobo2020 / Wikimedia Commons [CC0 1.0])