Business

Peru reaches deal with striking transport unions over fuel prices

State-owned Petroperu will make diesel cheaper, while fuel will be subsidised by special fund protecting against volatility

Updated 5 years ago · Published on 21 Mar 2021 8:20AM

Peru reaches deal with striking transport unions over fuel prices
According to Peruvian transport unions, a gallon – 3.8l – of diesel jumped to US$4 last December from US$2.90. – Pixabay pic, March 21, 2021

LIMA – The Peruvian government and transport unions, striking since Monday over fuel price increases, have reached an agreement to end the protests, authorities announced yesterday.

“After a long day of dialogue, leaders of the transport unions reached an agreement with the government and signed an act benefitting the sector, and are committed to lifting their strike,” tweeted the Transport Ministry.

As part of the deal, the state-owned Petroperu will reduce the price of diesel, and fuel will be subsidised by a special fund protecting against price volatility.

The unions agreed to clear roadblocks, including barricades made of rocks, burning tyres and tree trunks, which have snarled traffic on main roads in several regions.

Police on Friday broke up several protests and roadblocks, resulting in 71 arrests.

The strike has forced police to deliver medical oxygen tanks meant for coronavirus patients by helicopter.

Local media said the roadblocks caused delays for some people going to vaccination appointments at hospitals.

According to the unions, a gallon – 3.8l – of diesel jumped to US$4 (RM16.43) last December from US$2.90.

The protests came just weeks before April 11 presidential and parliamentary elections. 

In neighbouring Ecuador, an end to fuel subsidies in 2019 triggered the country’s worst unrest in decades, with 10 dead and more than 1,300 injured in anti-government rallies led by poor and indigenous communities. – AFP, March 21, 2021

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