BOLIVIAN trade unions are vowing indefinite strike action from today to defeat a government decree ending fuel subsidies, leading to an overnight rocketing in prices.

The strikes, preceded by mass protests that brought the streets of La Paz and Santa Cruz to a standstill on Friday, are the first big battle between the first elected right-wing government since 2006 and the powerful labour movement.

Supreme Decree 5503, popularly labelled the “gasolinazo,” ends subsidies that have been in place for two decades, leading to an 86 per cent increase in petrol prices and a 162 per cent rise for diesel.

It also contains a clause allowing private companies to import their own fuel, bypassing the usual state regulations, which unions say benefits big businesses and is a surrender of national sovereignty.

The Bolivian Workers Central Union federation announced the strike on Friday and said its 65 unions would not negotiate till the decree is withdrawn.

But President Rodrigo Paz Pereira says the decree it itself “non-negotiable,” describing it as “the starting point” for an administration committed to reversing the social programmes and public ownership policies of the Evo Morales and Luis Arce governments.

Mr Paz has abolished the Environment Ministry. His government contrasts with the Movement Towards Socialism administrations of 2006-19 and 2020-25 in having no indigenous ministers or ministers from a trade union or peasant association background, with most coming instead from international finance or development agencies.

He has also broken with his socialist predecessors in restoring relations with Israel and granting permission for the US Drug Enforcement Association, banned from Bolivia since 2008, to re-enter the country.