The logic behind the increase was impeccable. Fuel prices in Bolivia have been frozen since before Mr Morales came to power in 2006, even as the world price of oil has surged. The result has been rising demand, falling oil output and a mounting bill for fuel imports and subsidies. The price freeze cost the government $380m last year, a bill that would rise to $660m this year, according to Álvaro García Linera, the vice-president.
Tuesday, January 11, 2011
From the Economist,