Transport unions in Bolivia have initiated a national strike to protest fuel shortages, as diesel supplies from Russia face delays, putting pressure on President Luis Arce's government. Learn more about the impact of this strike on the country's economy and fuel imports.
By Lucinda Elliott
LA PAZ (Multibagger) - Transport unions in Bolivia started a national strike on Wednesday to protest fuel shortages, as diesel supplies shipped from Russia fail to arrive and pressure builds on President Luis Arce's government to address the strain on imports.
The protests include "road blockades at specific points throughout the country, in addition to border closures," Hector Mercado, president of the Bolivian Chamber of Transport industry group, told reporters late on Tuesday.
Buses, trucks and other medium-sized vehicles started to block main roads on Wednesday morning in the capital La Paz as well as a central highway that connects Cochabamba to Santa Cruz, according to local reports. Departures from major bus terminals early on Wednesday also were suspended.
Arce said on social media on Wednesday that he has formed an "Interministerial Committee to address the current situation."
The strike was originally scheduled for Aug. 1, but leaders of the heavy transport industry moved the date up and gave the government a period of 72 hours to provide "immediate solutions" to the fuel supply issues. Mercado said that the planned strike was indefinite.
Bolivia imports half of the gasoline needed to meet domestic demand, costing some $800 million annually, and as much as 80% of diesel supplies, mainly from other South American countries.
President Arce faced down a coup attempt in June and has struggled to manage a U.S. dollar shortage that has strained the gas-producing economy and limited fuel imports.
Arce said he would address shortages through supplies from Russia that were yet to arrive in landlocked Bolivia due to adverse weather conditions in the Chilean port of Arica that receives Bolivian cargo.
A government spokesman said on Tuesday that the Russian supplies were on route, following widespread reports of customers enduring long waits for petrol and diesel.
Analysis:
The national strike in Bolivia over fuel shortages, caused by delays in diesel supplies from Russia, highlights the country's dependence on imports for its fuel needs. President Arce's government is under pressure to address the situation, which could have significant economic implications for Bolivia. With half of the gasoline and 80% of diesel supplies being imported, the strike threatens to disrupt the country's transportation and economy. The delay in Russian supplies due to adverse weather conditions adds to the challenges faced by Bolivia in managing its fuel imports. This situation underscores the importance of diversifying energy sources and improving domestic production to ensure energy security and stability in the future.