Bolivia 2027 budget uses fixed gasoline price

Vice Finance Minister Óscar Navarro said the draft budget is in its final phase and will be sent to the legislative assembly before Oct. 31. He said budgets are prepared under the rules in force at the time of drafting, adding that the government will use the existing gasoline price of Bs 6.96.

That puts the 2027 budget at the intersection of two pressures: a need to preserve continuity in fuel supply and a commitment to unwind a costly subsidy regime. The government has recently tried to calm public concern, saying the subsidy remains in place for now and that restoring regular fuel availability remains the priority.

For investors, the key issue is what happens to inflation, sovereign finances and consumer demand when price controls eventually give way. A move toward market-based fuel pricing would likely improve the fiscal arithmetic over time, but it also raises the risk of a one-off jump in transport and input costs, which could feed through to broader prices and complicate policy.

The backdrop is also relevant for energy markets. Oil prices have been volatile, and the recent retreat in benchmark crude and energy-sector shares has not changed the fact that subsidy reform in an import-dependent economy can quickly reshape the balance between fiscal relief and social pressure.

The next catalyst is the budget submission to Congress before month-end, which should show how far officials are willing to go in acknowledging higher fuel costs, and whether the government can turn the IMF-linked commitment into law without triggering fresh political backlash.