Bolivia’s government is taking severe steps to address a fuel shortage by eliminating lunch breaks for public servants, reducing school hours, and cutting back on state vehicle use. These measures are intended to relieve economic pressure following protests and critical fuel delivery disruptions. The agricultural sector will receive prioritized fuel distribution as inflation rises and fiscal deficits widen.
In response to a severe fuel shortage, Bolivia’s President Luis Arce announced significant measures including the elimination of lunch breaks for bureaucrats, reduced in-person schooling, and a cut in the public vehicle fleet’s use. This response aims to alleviate mounting public pressure resulting from ongoing protests against the government that have led to critical fuel delivery blockages, further impacting the country’s economy.
Bolivia has struggled economically since 2023, facing reduced fuel imports while maintaining subsidized domestic prices. The country’s fiscal situation has worsened with shrinking revenues from gas sales, its primary foreign currency source until 2020. Arce emphasized, “Bolivia is not bankrupt… it has an economy that continues to generate public investment,” during a recent public address with cabinet ministers.
The government’s strategy involves several key steps: halving the utilization of state vehicles, allowing virtual classes to decrease physical transport demand, and instituting a new work schedule for public servants from 8:30 am to 4:30 pm without a lunch break to minimize traffic congestion. Additionally, priority in fuel distribution will be given to the agricultural sector, coupled with stricter military controls to combat fuel smuggling.
With inflation rates at a 16-year high, Bolivia is also managing a widening fiscal deficit. Arce remarked, “The problem our country faces today is very simple, it is the lack of temporary dollar liquidity.” The future political scene remains uncertain, with speculation about Arce’s reelection intentions and potential comeback bids from former president Evo Morales, despite legal challenges against him.
Bolivia is implementing drastic measures to mitigate a critical fuel shortage exacerbated by economic challenges and social unrest. Key initiatives include reducing public transportation usage, adjusting work schedules, and prioritizing fuel distribution to essential sectors. With rising inflation and a fiscal deficit, the government seeks to stabilize the economy while navigating political uncertainty.
Original Source: business.inquirer.net
