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President Evo Morales suddenly reversed a decision to cut gasoline and diesel subsidies that had dramatically raised costs after the biggest protests since 2006 spread across his nation.
Morales claimed cutting subsidies would save $380 million and end the sale of the low-cost subsidized fuels on black markets in Chile, Peru and Brazil.
His decree raised the prices of gasoline and diesel to rise 73% and 83%.
A 2003 protest after President Gonzalo Sanchez de Lozada raised propane gas prices helped send Sanchez de Lozada from office and aided Evo Morales' 2005 election.
Morales' approval ratings were already on the rocks. Polls show they plunged from 70% in January to 52% in November. His image especially suffered after a YOUTUBE video showed him kneeing an opponent in the groin during an October soccer match.
FOR REUTERS (ENGLISH) 1:09 VIDEO OF PROTESTS WITH :15 AD:
http://www.youtube.com/watch?v=KhBiecLRDLQ
