December 28, 2010 9:30 AM

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Bolivian transport workers begin an indefinite strike

Transport workers in Bolivia have begun an indefinite strike called in protest against an increase of more than 70 per cent in the price of fuel. Commuters struggled to reach the main cities and Army Lorries were used to help people get to work. The Bolivian government withdrew its heavy subsidies for petrol and diesel on Sunday saying it is not prepared to keep fuel prices artificially low. It said much of Bolivia's oil is being smuggled out of the country.The drivers' confederation, which groups together bus and lorry operators, said the price rise will have a negative impact that will be widely felt. The spokesman Franklin Duran said this will not only affect the transport sector but will affect everyone because all prices will rise.The country's Vice President said that it no longer made economic sense to subsidise an industry whose profits were flowing out of Bolivia.Fuel prices in the impoverished South American country which had been frozen for almost a decade, will now rise by 73 per cent for low-octane petrol and 83 per cent for diesel. The government has said it will compensate for the fuel price rise by increasing public sector wages and freezing utility bills.

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