Advanced Search
Business | Metro | Nation | World | Sports | Features | Specials | Delta Stories
 
 
Bolivian government cuts diesel price to defuse tension
20/1/2005 16:13

Bolivian President Carlos Mesa announced a 13 percent cut in the diesel price Wednesday night in a bid to end massive protests against fuel price hikes decreed late December, according to reports from Bolivia.
Mesa said in a speech to the nation that the decision was made after consultation with various parties involved, and he hoped the compromise could win back people's understanding.
"We are capable of listening and compromising," he said, adding that he was glad that so far protests have not spiraled into violent conflicts.
The government decreed a 10 percent increase in the price of gasoline and a 23 percent rise in diesel price on Dec. 30 to balance the budget. The move triggered a wave of protests in major cities and paralyzed the capital La Paz and the eastern department of Santa Cruz, as streets were blocked and public transport was grounded.
Demonstrators occupied three local government offices Wednesday in Santa Cruz, Bolivia's richest department. The main road to the Santa Cruz airport have been blocked since early last week, when big protests started. Some people even went on a hunger strike.
Protest organizers welcomed Wednesday's announcement. "It's a good sign. It shows a different attitude of humility and flexibility," said Carlos Dabdoub, spokesman for the Santa Cruz civic group.
But the group said it will not call off protests immediately because it needs more time to watch the government's next move and judge the whole situation.
Wednesday's announcement is the second time Mesa gave in to demonstrators' demands. Last week, Mesa canceled a foreign-run utility concession which protesters said did not provide good services.
Mesa has accused certain groups of trying to destabilize his government with the protests. He said he would rather resign than spill blood on the streets.



Xinhua