What's happened
Bolivia faces protests after President Paz ends fuel subsidies, raising prices and sparking strikes. Unions demand reinstatement amid economic reforms aimed at stabilizing reserves and reducing smuggling. The government enforces new fuel prices and wages, amid regional roadblocks and political tensions. Today's date: Tue, 23 Dec 2025.
What's behind the headline?
The protests highlight Bolivia's deep economic and political divisions. The government's decision to end fuel subsidies is a necessary step to stabilize the economy, which is suffering from a fiscal deficit of 12.5% of GDP and inflation at 22%. The move aims to save $3 billion annually, redirecting funds toward investments and reducing smuggling benefits. However, the resistance from unions and regional authorities underscores the social costs of austerity measures. The protests, though currently limited in turnout, could escalate if the government refuses to reverse the subsidy cuts. The political context, with unions aligned to Morales and the upcoming local elections, suggests this conflict will persist, shaping Bolivia's economic policies in the near future. The government’s approach of balancing economic reform with social stability will determine whether the crisis deepens or stabilizes.
What the papers say
AP News reports that President Paz's decision to end fuel subsidies has led to protests and regional roadblocks, with unions demanding their reinstatement. The Independent highlights the economic rationale behind the move, including reducing smuggling and stabilizing reserves, while noting the limited protest turnout and regional tensions. Reuters emphasizes Paz's framing of the reforms as a move towards 'order and justice,' with plans to open the door for direct diesel imports and fix fuel prices for six months. The contrasting perspectives reveal a government pushing necessary reforms amid social unrest, with some sources emphasizing economic necessity and others highlighting social resistance and regional instability.
How we got here
Bolivia's government, led by President Paz, recently ended fuel subsidies that had kept gas prices low for over 20 years. The move was driven by the need to address a severe economic crisis, depleted foreign reserves, and declining natural gas exports. The subsidy removal aims to save up to $3 billion annually, but has triggered widespread protests from unions aligned with former President Evo Morales, who demand its reinstatement. The government has introduced measures including a 20% wage increase and new fuel prices, which have been backed by business groups and the U.S. government, but face opposition from various unions and regional authorities.
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Common question
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Why Are Bolivian Protests Happening Now?
Recent protests in Bolivia have captured global attention, sparked by the government's decision to end fuel subsidies. Many are wondering what led to this unrest, how it impacts the country, and what might happen next. Below, we explore the key questions surrounding these protests and the country's economic reforms.
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Bolivia, officially the Plurinational State of Bolivia, is a landlocked country located in western-central South America. The constitutional capital is Sucre, while the seat of government and executive capital is La Paz.