The government has increased fuel prices by 35 percent in response to higher world oil prices and in an effort to increase revenues for the treasury.

The price rise Thursday will result in higher transportation costs and is expected to spur demands by labor for higher salaries.The Bolivian Workers' Confederation described the price hike as brutal and said it will mobilize its members to resist the increase.

The price for a gallon of gasoline rose from about $1.20 to $1.65. Also affected were prices for natural gas and kerosene, widely used for cooking. Bolivian workers earn an average of $80 a month.