Bolivia Implements Strategic Measures to Combat Fuel Shortage

Bolivia’s President Luis Arce announced measures to tackle a severe fuel shortage affecting the economy. Key actions include eliminating lunch breaks for bureaucrats, reducing in-person schooling, and cutting state vehicle use by half. These steps aim to alleviate public protests and prioritize fuel distribution for agriculture amidst a backdrop of rising inflation and financial instability.

Bolivia’s government has announced significant measures to address an ongoing fuel shortage, which has fueled public protests and roadblocks. President Luis Arce revealed a plan involving the removal of lunch breaks for government employees, a reduction in in-person schooling, and a cutback on the public car fleet. These actions aim to mitigate the impact of the fuel scarcity on the economy.

The nation has been facing economic challenges since 2023, primarily due to decreased fuel imports, which has negatively affected domestic sales. Bolivia’s reliance on gas exports, its main source of foreign currency until 2020, has weakened as revenues have declined. Arce emphasized the existence of economic activities, stating, “Bolivia is not bankrupt… it has an economy that continues to generate public investment.”

To alleviate the crisis, the government plans to reduce the use of state vehicles by 50%, increase virtual classes, and extend working hours for public servants from 8:30 a.m. to 4:30 p.m. without breaks, which could help diminish traffic during lunch hours. Additionally, the agricultural sector will receive priority in fuel distribution. Military controls will be heightened to tackle issues of fuel smuggling, which exacerbate the situation.

Bolivia is contending with the highest inflation rates in 16 years while managing a growing fiscal deficit. President Arce pointed out that the primary challenge facing the nation is a shortage of temporary dollar liquidity. Future political ambitions remain uncertain as Arce has not confirmed his reelection intentions for August, while former leader Evo Morales is navigating legal issues related to his past actions and is barred constitutionally from returning to power.

In conclusion, Bolivia is actively addressing a significant fuel shortage through measures including the cancellation of lunch breaks for government employees, reduced classroom attendance, and limitations on public vehicle use. These strategies are a response to ongoing economic difficulties exacerbated by inflation and insufficient dollar liquidity. The government aims to stabilize the situation while prioritizing the agricultural sector and strengthening control measures against fuel smuggling.

Original Source: business.inquirer.net