Measures are to overcome the economic crisis | Medidas son para superar crisis económica

By El Diario:

Government warns it will not yield to pressure

Lupo: measures are to overcome the economic crisis

  • Minister José Luis Lupo stated that the measures “are not negotiable”; they are indispensable to overcome the economic crisis and to put the country’s macroeconomy in order. He also said the subsidy was financially unsustainable and only benefited smuggling and corruption networks.
After the withdrawal of the fuel subsidy, the population flocked to markets for fear of price increases in products.

The Government reaffirmed yesterday that it will not reverse Supreme Decree 5503, which eliminates the fuel subsidy, despite protests and threats of strikes by different sectors. In this regard, the Minister of the Presidency, José Luis Lupo, said that the measures “are not negotiable” and are indispensable to overcome the economic crisis and to put the country’s macroeconomy in order.

He also justified ending the subsidy, noting that it was financially unsustainable and that it benefited smuggling and corruption networks. He asserted that, had this adjustment not been applied, Bolivia was heading toward a situation of economic unviability.

However, he clarified that gasoline maintains a level of subsidy and that the decree includes relief measures for transportation, such as reduced tariffs on spare parts, tires, and batteries.

Meanwhile, the Minister of Hydrocarbons and Energy, Mauricio Medinaceli, explained that the entire hydrocarbons chain was analyzed to adopt the measure, which will provide greater resources to Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) and allow reactivation and investment in the sector, as well as in refineries.

Regarding gasoline prices of 6.96 bolivianos per liter and diesel at 9.80 bolivianos, the authority indicated that this is because diesel is more difficult to control, since 95% of consumption is imported.

As for gasoline, half of what is consumed is refined domestically, making it harder for smugglers to handle due to its volatility. “It is the only way to combat (illegal trade), with economic measures,” he added.

On the other hand, the Government attributed the increase in prices and shortages of basic food basket products to a “collective psychosis” generated by misinformation and excessive consumption by the population; it also reaffirmed that it will not reverse the withdrawal of the fuel subsidy, despite threats of social protests.

The Ministers of Economy, José Gabriel Espinoza, and of Hydrocarbons, Mauricio Medinaceli, explain the new measures.

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