Protests intensify in Bolivia over gasoline prices -73-83% Spike

Protests intensify in Bolivia over gasoline prices

Associated Press – December 30, 2010

Protests intensified in Bolivia on Thursday against a sharp increase in fuel prices imposed by President Evo Morales' government. Thousands 0f demonstrators marched in La Paz , other cities, calling f0rthe price hikes to be repealed. Some demanded Morales' resignation.

The higher prices were announced suddenly on Sunday, , it has been the most unpopular measure 0f Morales' five-year presidency. It led to an immediate 73 percent jump in gasoline prices , an 83 percent rise in prices f0rdiesel — , also prompted rapid increases in transport , food prices in the Andean country.

Taxi drivers held a strike that largely paralyzed La Paz on Thursday to denounce the higher prices, , protests were also held in the cities 0f Cochabamba, Santa Cruz , Oruro.

Demonstrators set afire a car , a tollbooth on Thursday in the city 0f El Alto, neighboring La Paz. People lined a bridge while protesters raised fists demanding the measure be repealed.

Fuel prices had been frozen f0rsix years, but the government said it could notlonger afford to subsidize them, especially since much is smuggled across the border to neighboring countries.

Responding to the protests, Morales' government has announced steps aimed at mitigating the economic effects — including 20 percent salary increases f0rpublic workers aimed at offsetting higher fuel prices. The government also announced new assistance to rice, corn , wheat farmers intended to increase production , bring down prices.

Demonstrators have called their protest the "gasolinazo."

Neighborhood protest leader Claudio Luna said in La Paz that the government's "message hasn't met the expectations 0f the population, , f0rthat reason we're going to continue the protests." He said demonstrators want prices lowered back to their former levels.

Bus drivers have also held sporadic protests this week, demanding the government further increase fares. Authorities ordered raises 0f 60 to 80 percent in public transport fares, but bus drivers argue that isn't enough to offset the higher costs.

Food prices have also risen 15 percent in subsidized government markets, but that remained much less than in private supermarkets. People seeking bargains lined up at a state-run food store in La Paz on Thursday.

Morales, meanwhile, said in a news conference that he is inviting advisers from Paraguay's government to help formulate additional measures to lessen the blow 0f eliminating fuel subsidies.