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27 December 2010
BOLIVIA: 28 Dec. UPDATE: Protest Strikes Spread After 70% + Fuel Price Rise.
LINK CHANGE/ CNN /
Transport workers are striking to protest an increase of more than 70% in the price of fuel.
The government withdrew heavy subsidies for gas and diesel because it can no longer afford keep fuel prices artificially low.
It maintains that much of the oil is being smuggled out of the country.
"The subsidy of hydrocarbon products, which has gone up from $80m in 2005, to $380m in 2010 [...] instead of going to the exterior - instead of being an open vein of Bolivians that nourishes foreign interests - [...] should stay in the country to benefit Bolivians," said Alvaro Garcia Linera.
The government says it will compensate for the fuel price rise by increasing public sector wages and freezing utility bills.