Bolivia’s Congress has approved a $1.9 billion agreement with the International Monetary Fund, and President Rodrigo Paz immediately eliminated diesel subsidies required by the deal. Nothing says “economic stabilization” quite like making fuel more expensive before the public has finished reading the press release.
The three-year program is intended to address high inflation, weak growth and depleted public finances. It still needs final approval from the IMF’s executive board, but supporters hope the agreement will restore investor confidence and unlock as much as $5 billion in additional financing from international lenders.
The subsidy ended immediately
Bolivia had long protected consumers from the full market cost of fuel. Paz removed the diesel subsidy while leaving gasoline support in place for now. That distinction matters to households, farmers, transport workers and businesses whose costs move with every delivery truck.
The government says money saved on subsidies can support schools, hospitals and other public services. Paz also announced about $79 million in direct assistance for nearly three million people and preferential loans for small businesses.
Labor groups expect the pain to arrive first
Unions and the Bolivian Workers’ Central oppose the package, warning that higher fuel prices and spending cuts will deepen poverty. Protests earlier in the year disrupted the country, and the state of emergency has been extended for another 90 days.
The Associated Press reported the congressional approval and subsidy change on September 19, 2026.
IMF programs arrive with macroeconomic vocabulary—liquidity, confidence, fiscal balance—while families experience them as bus fares and grocery totals. The government may be right that the old system was unsustainable. It now has to prove that “reform” will not become another word for handing the bill to people with the smallest wallets.
Facts first. Side-eye included.
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Dana Side-Eye
Receipts, Rumors & Internet NonsenseDana reads the fine print, checks the timeline, and keeps one eyebrow permanently raised. She covers viral claims, internet pile-ons, and suspiciously convenient explanations.
“Screenshots are forever. So is the side-eye.”