Protests in Bolivia escalate amid economic turmoil and policy demands

Clashes erupt in La Paz as workers protest against rising fuel prices and damaged vehicles, blaming subsidy cuts.Bolivian workers are on strike calling for higher wages and remedies to damage caused by the removal of a fuel subsidy [Luis Gandarillas/Epa]Published On 7 May 2026Protests in Bolivia have entered the third day with three separate groups calling for reforms to agricultural, educational and labour policies.The country’s main trade union, the Bolivian Workers’ Centre (COB) union, issued a strike call last Friday, coinciding with labour reform protests around the globe to mark International Workers’ Day.Recommended Stories list of 4 itemslist 1 of 4‘Supercharged’ donations: How far-right Reform UK built a global networklist 2 of 4SpaceX backs Anthropic with data centre deal amidst Musk’s OpenAI lawsuitlist 3 of 4French warship moves towards Red Sea as Paris eyes Hormuz missionlist 4 of 4What is China’s anti-sanctions law and how does it work?end of listThe South American nation was already facing a currency shortage, causing its largest economic crisis in 40 years.On Tuesday, COB, alongside transport and education workers, took to the streets, leading to clashes with police. Law enforcement officers fired tear gas at protesters near the presidential palace in La Paz, and in nearby El Alto, public workers blocked the streets with buses, cars and trucks.What’s behind the transit protests?Last year, centre-right politician Rodrigo Paz was elected president of Bolivia, marking a shift in government leadership in a country that had been under socialist rule for decades.Bolivia, which is facing a budgetary crisis, ended a fuel subsidy, putting pressure on the country’s working class. The fuel subsidy that Paz cut was decades-old and kept petrol prices at 2006 levels.As a result, quality fuels became increasingly inaccessible. Transport workers say that they were forced to use lower-quality fuel and claim that, because of that, their cars, trucks and buses have damaged engines.They are demanding compensation from the government for the damage.The strikes brought public transport to a halt in several major cities around the country. Among them are the administrative capital, La Paz, as well as El Alto, Cochabamba, Oruro, and the constitutional capital, Sucre.They have created at least 70 roadway blockages, according to the Bolivia-highway-association" class="entity-link entity-organization" data-entity-id="123761" data-entity-type="organization">Bolivia Highway Association.A litre of diesel fuel under the subsidy cost 3.72 bolivianos ($2.06 per gallon) and premium petrol cost 3.74 bolivianos ($2.05 per gallon). Without the subsidies, those prices now jump to 9.80 bolivianos ($5.40 per gallon) for diesel and 6.96 bolivianos ($3.84 per gallon) for premium petrol.Transit workers also demanded shorter queues at filling stations, as well as road repairs.Why was the subsidy cut?Bolivia has faced a budgetary crisis and is running low on foreign currency reserves. Last year, Paz and his centre-right government replaced socialists who had been in power for decades, and at the time, Paz said that the country was in an “economic, financial, energy, and social emergency”.When Paz took office, the country’s total debt was 95 percent of GDP, and it had consistent deficits that mirrored the country’s commodity collapse in 2014. Bolivia’s liquid reserves were less than one month of imports, according to analysis from the non-partisan global economic think tank Finance for Development Lab.In an effort to stabilise the economy in February, the government sought $3.3bn in financial assistance from the International Monetary Fund, as first reported by Bloomberg. By March, the country’s finance minister claimed that the nation would make dollar bond coupon payments. That led to Moody’s raising the country’s credit rating.That month, Bolivia’s inflation hit 15 percent, a 10 percent drop from a 25 percent peak last July.What are the other protests calling for?However, other protests are also under way in Bolivia at the same time. A teachers’ union is calling for a state-funded “single free public education system”.COB has called for an indefinite general strike.“Starting today, a general, indefinite and active strike is declared, until the government understands the people’s demands,” COB’s Secretary-General Mario Argollo told a group of 1,000 supporters on Friday amid the calls for the protest in El Alto.Among the demands are a 20 percent increase to the nation’s minimum wage, which currently sits at 3,300 bolivianos ($477.71) per month and took effect in January. That is an increase from 2,750 bolivianos ($398) set in 2025.Paz pushed back on the demands last week.“If you want to raise salaries, first create jobs,” Paz said in the city of Cochabamba on Friday.The group also wants pension increases and cuts to salaries for government officials.