Bogotá. The Colombian government and truckers reached an agreement on Friday to suspend roadblocks in protest against a recent rise in diesel prices, amid a four-day protest that has caused food and fuel shortages in major cities across the country.
The agreement was reached after the government reversed its decision to increase the price of diesel by 1,904 pesos (45 cents) per gallon starting in September.
“After several days of dialogue, the government signs an agreement with the transport bases to lift the strike,” the Ministry of Transport reported on its X account.
The agreement provides for an initial increase of 400 pesos (0.09 dollars) and a similar increase starting on December 1.
“The truckers’ strike has been lifted after an agreement was reached,” said the National Association of Cargo Transport Companies.
Before the price hike and the start of the protest, the average price of a gallon of diesel was 9,065 pesos (2.16 dollars). The value of the fuel remained frozen for 56 months.
In Colombia, the price of diesel is subsidized by the government through a special fund, a cost that represents 12 billion pesos (2,866.8 million dollars) annually to public finances.
The government insists on the need, as was done with gasoline prices, to balance them with international values in order to free up resources and allocate them to social investment.
“Another 14 points were agreed upon, including the suspension of additional increases until structural changes are achieved in the sector,” the Ministry of Transport explained.
The Colombian government’s decision to reverse an initial increase in the price of diesel to defuse truckers’ protests would impact public finances, according to analysts.
Roadblocks have affected hydrocarbon production and energy giant Ecopetrol announced Thursday that it has shut down some fields such as Caño Sur, in the municipality of Puerto Gaitán, in the department of Meta.
The Minister of Mines and Energy, Andrés Camacho, said that crude oil production will gradually begin to normalize in the fields that have reached their maximum storage capacity.
“We know that the increase does not satisfy the need to close the deficit we have in this price stabilization fund, but it opens the possibility of unfreezing. This is good news for Colombia, we will continue working to move forward on what it means to abandon subsidies on fossil fuels,” the official said in a statement.
The National Police reported that the main roads in the South American country with a population of 50 million are now open, and that vehicle traffic has returned to normal.
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– 2024-09-08 11:23:06
