La Paz, Bolivia— Protests erupted across Bolivia after the government eliminated long-standing fuel subsidies, causing a sharp increase in fuel prices and transport fares and escalating public outrage over the country's economic crisis.

On Friday, demonstrators stopped traffic in major cities such as La Paz, El Alto, and Santa Cruz, demanding the reinstatement of subsidies that had kept fuel prices low for nearly two decades.

The unrest comes after Bolivia's newly elected centre-right President Rodrigo Paz announced on Wednesday that state fuel subsidies introduced by previous leftist governments would be phased out. The move caused an immediate doubling of fuel prices, which went into effect on Thursday.

Transportation fares doubled

The increases in fuel prices have had an immediate impact on public transport, which is the primary mode of transportation for millions of Bolivians. Bus fares doubled overnight, prompting drivers to stage roadblocks and mass protests.

Traders joined the protests in La Paz, warning that higher fuel costs were raising prices and driving away customers.

"For us, there is no Christmas anymore," said Paulina Tancara, a 74-year-old small business owner who felt betrayed after backing Mr Paz in the August-October elections.

The economic crisis deepens

President Paz has justified the subsidy cuts as part of a larger reform package aimed at stabilising Bolivia's faltering economy. The government claims that fuel subsidies cost the state billions of dollars each year, adding to fiscal pressures.

Bolivia is currently experiencing a severe foreign currency shortage, which limits its ability to import fuel and other essential goods. In November, annual inflation reached nearly 20%, raising public concerns about rising living costs.

Broader strikes and political tensions

Opposition to the subsidy cuts has spread beyond transport workers and traders. A mining union has declared an indefinite strike, while coca growers led by former President Evo Morales intend to march on Cochabamba on Monday.

Mr Morales, who served three terms as president from 2006 to 2019, was barred from running in this year's election due to constitutional term limits. He accuses the government of imposing harsh economic measures on the poor.

Previous attempts to eliminate Bolivia's fuel subsidies have met with fierce opposition, and analysts warn that the latest unrest could be a litmus test for President Paz's leadership.