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LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

may 1, 2024

What Would a Vote on Fuel Subsidies Mean for Bolivia?

Bolivian President Luis Arce announced earlier this month that the country would hold referendums on issues including whether to continue fuel subsidies. // File Photo: Bolivian Government.

Q

A

Javier Gómez, economist and researcher at CEDLA in Bolivia: “The result of the vote depends on several factors, including public perception of subsidies, the economic situation and the campaign carried out before the referendum. Since subsidies have kept fuel prices low, a significant portion of the population is likely to vote in favor of keeping them, especially those who depend on them. However, the unstable supply of fuels is changing opinions, at least partially, about subsidies. Fuel shortages could sway some voters toward eliminating them. Criticism of the fuel subsidy policy is growing, and the fiscal pressure to maintain gasoline and diesel imports is not sustainable as it accelerates the depletion of foreign exchange reserves. With foreign exchange reserves depleted and costs of…”

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A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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