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Evo Reverses 180: Gasoline Subsidies Will Continue

Posted: admin on Jan 01 | News, Politics

Today just hours before new year President Evo Morales gave a press conference where he announced that he will “obey the people” and annule Supreme Decree 748 which he had his vice president announce while visiting Venezuela on December 26th. Vice President Alvaro Garcia Linera had announced on December 26th that Bolivia spends 380 million dollars subsidizing fuel each year.  The decree had caused gasoline, diesel, jet fuel, and vehicular natural gas prices to skyrocket by 57% to 82% and led to a nation wide bus and transport strike that paralyzed the country during the holidays. Morales’ spokesman Ivan Canelas had announced to the national press that this move to cut subsidies was “valiant and patriotic” because the gas subsidies were “shedding Bolivia’s blood and neoliberal” and “this is why all the right-wing opposition leaders and ex-mayors of neoliberal ex-presidents agree in denoucning this decree.” Morales has spent the past 4 days justifying his decision to end gas subsidies, calling them “neoliberal” and blaming transport workers for raising prices. Bolivian groups have been almost unanimous in denouncing the gas-hike, even the coca growers unions which Evo used to lead decided to block the Cochabamba-Santa Cruz road. Angry citizens stoned the government offices in El Alto in protest on December 30th and many vehicles caught crossing road blocks across the country also had stones throw at them.  Evo declared today after a large meeting with his ministers, social and labor leaders that, “This measure isn’t necessary, it is not opportune: I have listened. I understand the recommendations of the workers and social organizations.” He then wished everyone a happy New Years. Morales re-iterated that Bolivia spent roughly 660 million dollars subsidizing gasoline and diesel just in 2009 and said that this subsidy might increase in 2011. Morales had offered a wide range of “palliative measures” such as a 20% wage increase, double the normal extra month of salary in December,extra pay for the military, police, teachers, health workers and a special payment to every mayor in the country but he said tonight that none of these will occur since he has decided to continue subsiding fuel.  Yesterday in Cochabamba police officers fired tear gas into crowds of protesters to disperse the marchers and similar scenes have been occurring since the 26th in most Bolivian cities. Beginning on the 29th rumors began spreading across Bolivia that the government would institute a “corralito” whereby it would freeze all the nation’s bank accounts similarly to what happened when the Argentina economy collapsed; this led to runs on major Bolivian banks in the past several days with long lines of people waiting to withdraw money from ATMS and banks. Evo had denied that the government planned to freeze accounts and said that the runs on the banks was just because of typical New Year’s celebrations. Morales blamed the press for these rumors saying, “In 2007 and 2008 they (the press) had deceived the people by announcing this measure (freezing of accounts) when it didn’t happen.” Morales said today that when he was elected in 2006 he promised to listen to the people and said today that he heard the overwhelming opposition to this decree and listened. “I want to thank the social movements that have met with us, thanks brothers and rural brothers. Through the firm defense of this measure that benefits the Bolivian people, through these recommendations that in the moment this measure isn’t opportune, and that evidently this is a harsh hit to the national economy, however we are responsible with the Bolivian people.“

To learn more look at any Bolivian newspaper.

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