“People don’t live off politics, they live day to day, off of what they produce and what they earn,” – Geanina García, a 31-year-old architect from El Alto
The fuel crisis in Bolivia has reached a tipping point! Once a proud producer of natural gas and a symbol of South American economic resilience, Bolivia is now grappling with shortages of fuel, a collapsed currency, spiraling inflation, and widespread economic hardship. This crisis is putting millions of Bolivians on edge, with citizens protesting in the streets, accusing the government of failing to respond effectively to mounting shortages of essential goods.
Fuel queues, a common sight in many parts of the country, have become a daily reality. This prolonged fuel shortage is not merely an inconvenience but a catalyst for broader economic instability. Bolivia, which once boasted impressive growth during the 2000s thanks to its commodities boom under former President Evo Morales, is now in a precarious situation. Over the past year, the country has found itself unable to supply basic goods, from food staples to construction materials, in part due to the lack of gasoline and diesel.
Handwritten signs with messages that read in Spanish: “We demand solutions from the government,” “Arce, don’t starve us,” and “Solutions, not more problems,” hang from vendors’ stalls at a street market in La Paz, Bolivia, Oct. 21, 2024. (Associated Press).
A Nation on the Edge: Economic Collapse in Motion
In response to the crisis, Bolivia has been forced to import most of its gasoline and diesel from neighboring countries like Argentina and Russia at a staggering cost of approximately $56 million per week. Yet, the government’s subsidies for fuel—which many critics argue are unsustainable—have failed to prevent the situation from spiraling out of control.
The dire fuel shortage has had a ripple effect across Bolivia’s economy, crippling its already fragile sectors. Farmers have been unable to get their produce to market, machinery has gone unused, and food prices have soared. The price of staple goods like potatoes, onions, and milk has doubled, further compounding the misery of Bolivia’s already struggling poor population. Inflation, which was once touted as the lowest in South America, has now skyrocketed to nearly 8%, one of the highest rates in the region.
In La Paz, hungry Bolivians have been forced to queue for hours just to purchase basic food supplies. At the same time, the diesel shortage has also crippled agriculture during one of the most crucial planting seasons.
Klaus Frerking, vice president of the Eastern Agricultural Chamber of Bolivia, warned, “Without diesel, there is no food for 2025.”
A woman walks next to a queue of truck drivers waiting to fill their diesel tanks in El Alto, Bolivia (Associated Press)
Government Response: Denial and Uncertainty
The government of President Luis Arce, once seen as a continuation of Morales’ socialist legacy, has been slow to address the root causes of the economic collapse. Instead, Arce has repeatedly insisted that the crisis is temporary, claiming that diesel sales are “returning to normal,” despite widespread evidence to the contrary. His most recent promise to resolve the fuel shortage within ten days has come and gone, with no substantial improvements in sight.
“Diesel sales are in the process of returning to normal,” Economy Minister Marcelo Montenegro claimed earlier this week, but Bolivians are far from convinced. Amid the deteriorating economic situation, Arce’s approval ratings have plummeted. Public outcry has reached a fever pitch, with protests and strikes erupting in major cities, including Santa Cruz, Bolivia’s economic hub.
“There are no solutions coming from the government. We want real answers,” said Reinerio Vargas, vice rector of Gabriel René Moreno Autonomous University in Santa Cruz, where protests against Arce’s handling of the economy have been particularly intense.
For many Bolivians, the crisis has not only deepened poverty but also exposed the weaknesses in the government’s economic policies. Arce’s administration continues to face a difficult balancing act between appeasing the public with promises of relief and managing the spiraling costs of fuel imports and subsidies.
A Fractured Political Landscape?
The political environment in Bolivia is as fractured as its economy. President Arce is locked in a bitter power struggle with his former mentor, Evo Morales, who is now the opposition leader. Morales, who served as Bolivia’s president from 2006 to 2019, has been an outspoken critic of Arce’s handling of the economy, further deepening the political divide in the country.
Recent protests in support of Morales have blocked vital roadways, disrupting the already strained fuel and food supply chains. While Arce’s government has attempted to pin the blame for the shortages on these blockades, the public is less than convinced by the narrative. “They deny there are problems,” said Gonzalo Chávez, an economic analyst based in Bolivia. “They blame external factors, but the reality is that the government is failing to address the root causes of the crisis.”
Protesters and critics alike argue that Bolivia’s economic troubles are not merely the result of roadblocks or international pressures but a failure of policy and management. “People don’t live off politics, they live day to day, off of what they produce and what they earn,” said Geanina García, a 31-year-old architect from El Alto. García’s sentiments reflect the growing frustration across the country, where the economic strain is pushing many to their breaking point.
