SÃO PAULO, Brazil – Brazilian President Michel Temer says he
will concede to demands just a week after 600,000 truckers went on
strike paralyzing the country.
A state of emergency was declared in Brazil and the army was ordered
to clear highways over the weekend as the country struggled with food
and fuel shortages that shut down much of the nation, including
international airports, after drivers went on strike a week ago to
protest fuel prices.
CNN is reporting that with increasing concerns about a lack
of goods getting to consumers, including medical supplies, Temer said
the government would subsidize the cost of diesel fuel for the next 60
days in order to get drivers back to work.
Pump prices will be cut to $0.46 reals per liter (about $0.16 CND per
liter) from $3.60 reals ($1.26 CND) for two months, followed by
increases only once a month. Some taxes on diesel will also be
Truckers spent the week blocking the highways after fuel prices had increased five times in week prior to the strike.
The government will make up the difference with subsidies paid to the government-run oil company.
The government estimates that that subsidies will cost the government up to $10 billion reals (about $3.5 billion CND).
Brazil has recently gone through one of the biggest recessions in the
country’s history and will be going to the polls in October for their
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