Bolivian transportation workers begin strike after fuel price increases

[News_Editor]

Bolivian transportation workers begin strike after fuel price increases

2010-12-28 16:28:31 GMT+7 (ICT)

LA PAZ, BOLIVIA (BNO NEWS) -- Transportation workers on Monday began a nationwide strike to protests the rise in fuel prices approved by the Bolivian government, ranging from 22 to 99 percent, according to the La Razon newspaper on Tuesday.

The fuel prices were increased after six years in order to consolidate and guarantee the development and production model of the South American country. The modifications to the fuel prices were announced on Sunday by Vice President Alvaro Garcia.

Until Sunday, Bolivia had the petrol barrel price frozen at $27.11 while international markets had the price at over $90 per barrel. The measure was approved in order to encourage private and state oil companies to produce more petrol.

According to Garcia, the companies had little interest in producing petrol as the price was too low. He said that weeks ago, a private foreign company discovered petrol but had no interest and continued digging until finding natural gas instead.

However, transportation unions said that the measure will have a negative impact as the prices of gasoline and diesel increased significantly as well. The new prices affect all transportation, from buses to airplanes.

The Bolivian confederation of drivers (CCHB) announced on Sunday a nationwide strike starting on the first minute of Monday in protest of the increased fuel prices. CCHB also said that on Tuesday, further measures will be taken as unions from all across the country will gather in La Paz.

However, the public transportation was not severely disrupted as the Bolivian government engaged in negotiations with unions since Sunday. Transportation unions presented some proposals to the government in relation to an increase in fees in order to cope with the new fuel prices.

The proposals are being analyzed by government officials and, meanwhile, some cities continue having public transportation services as a result. In addition, the military offered their vehicles to transport citizens free of charge in the cities of El Alto and La Paz while negotiations are ongoing.

Other unions, not related with transportation, have pledged alliance with the transportation workers. The Bolivian workers central (COB) rejected the increase on fuel prices and announced that it will participate in Tuesday's meeting as the measure affects the economy of every citizen.

"COB does not agree with the increase of fuel prices as we believe it would bring negative consequences such as an increment in costs in everyday life," said COB executive secretary Pedro Montes, as quoted by local media. "We will request a wage increase as well to cope with the new increments."

-- © BNO News All rights reserved 2010-12-28