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Market Chatter: Bolivia Raises Diesel Price as Supply Shock Bites

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The government of Bolivia has increased the price of diesel by 84% for large industrial consumers after shortages that had led to queues at filling stations in the South American country, Bloomberg reported on Monday.

A price of 18 bolivianos ($1.55) per liter will be charged to diesel users with a consumption of more than 120 liters a month while the original, lower price of 10 bolivianos remains unchanged for customers who buy less than this amount.

The government hopes that this two-tier system will reduce fuel smuggling and give private companies an incentive to import more supply, the article said.

The new price will be revised on a weekly basis in accordance with market prices, to prevent subsidized fuel from putting a strain on government coffers.

has reached out to Bolivia's energy ministry for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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