Fuel and fare increases put cities on edge | Aumentos de combustibles y pasajes tensan a las ciudades

By El Diario:

After the gasoline increase

Minibus fare should cost a maximum of Bs 2.78

The public rejects the exaggerated increase in fares by transport operators. CREDIT: El Diario

The increase in the price of gasoline to Bs 6.96 and diesel to Bs 11.30 would imply, according to technical studies of urban transport cost structures, that the minibus fare in the city of La Paz should be adjusted to a maximum of Bs 2.78 per passenger.

That amount represents an increase of 38 centavos compared to the current fare of Bs 2.40 and falls within the range of variations calculated for different cities in the country, based on the specific weight of fuel in the operating costs of the service.

The study was carried out by economist Eduardo Pando, from the consulting firm Gerenssa.

On Wednesday, the government of President Rodrigo Paz issued Decree 5503, which, among several other aspects, raises the price of a liter of special gasoline to Bs 6.96 and diesel to Bs 9.80, triggering protests in several parts of the country as well as strikes and blockades by transport operators.

The consulting firm Gerenssa prepared a comparative table based on technical fare studies conducted by municipal governments, departmental governments, and its own analyses, detailing the impact of the fuel price increase on three modes of urban transport: 14-passenger minibuses and 21-passenger microbuses.

The case of La Paz: 14-passenger minibus

In the specific case of La Paz, fuel represents 21% of the total cost structure of a 14-passenger minibus, which includes fixed costs, operating costs, investment, and maintenance.

With a current fare of Bs 2.40 set in February 2025, and considering an 86% increase in fuel prices, the maximum technical adjustment would place the fare at Bs 2.78.

This adjustment is equivalent to an increase of 38 centavos per trip and places La Paz among the cities where the impact of fuel price increases is significant, although not the highest in absolute terms within this mode. (Brújula Digital)

Comparison with other cities

Gerenssa’s analysis shows that, for the 14-passenger minibus mode, the calculated adjustments vary by city and by the weight of fuel in the cost structure.

In Oruro, where fuel represents 19% of costs and the current fare is Bs 2.00, the adjusted price would reach Bs 2.32, an increase of 32 centavos. In El Alto, with the same percentage weight of fuel (19%) and a base fare of Bs 1.50, the adjustment would raise the fare to Bs 1.74, that is, an additional 24 centavos.

In Potosí, where fuel accounts for 22% of costs and the current fare is Bs 2.00, the technical adjustment also places the fare at Bs 2.32, with an increase of 32 centavos. Cochabamba, for its part, shows a fuel weight of 17%, a base fare of Bs 2.50, and an adjusted price of Bs 2.85, which represents an increase of 35 centavos.

Microbuses: similar increases, but with variations

Gerenssa’s table also details the impact of the fuel price increase on the 21-passenger microbus mode, where the percentage increase in fuel price considered (diesel) is higher, at 163%.

In La Paz, fuel represents 19% of the microbus cost structure. With a current fare of Bs 2.00, established in February 2025, the adjusted price would be Bs 2.31, implying an increase of 31 centavos per passenger.

In Oruro, with a fuel weight of 20% and a base fare of Bs 2.00, the technical adjustment raises the fare to Bs 2.32. In El Alto, also with a 20% fuel incidence and a current fare of Bs 1.50, the adjusted fare would be Bs 1.74.

Potosí shows a fuel weight of 21% and a base fare of Bs 2.00, with an adjustment up to Bs 2.33. Tarija, with an incidence of 22% and a fare of Bs 2.00, would reach an adjusted fare of Bs 2.34. Santa Cruz, with the same percentage weight of fuel (22%) and a current fare of Bs 2.30, presents one of the highest increases in absolute terms, with an adjustment up to Bs 2.69, that is, an additional 39 centavos.

Fuel as a key factor in the adjustment

One of the central elements of the analysis is the specific weight of fuel within the total cost structure of urban transport. In none of the cities analyzed does this component exceed 22% of the total, which explains why, even with significant increases in gasoline and diesel prices, the technical fare adjustments are expressed in tens of centavos and not in increases of one or more bolivianos.

In La Paz, both for minibuses and microbuses, the weight of fuel remains below the highest average observed in other cities, which limits the maximum calculated increase to between 31 and 38 centavos, depending on the mode. (Brújula Digital)

Leave a comment