Brazilian President announces diesel price cut to end drivers strike

Brasilia, May 28 (IANS) Brazilian President Michel Temer has announced a new reduction in diesel prices to end the transport strike that has paralyzed the country for the past one week.

Temer's administration on Sunday decided to cut the diesel price by 0.46 reais (about $0.13) per liter and freeze it for 60 days, after the truckers' refusal to accept the 30-day diesel price freeze that had been agreed on May 24, reports Efe news.

In the first agreement, the price had been reduced by 0.23 reais.

The new diesel price will be valid for 60 days without any change. After that, monthly adjustments will be made so that each truck driver can better plan their freight costs.

In order to lower the diesel price, the government will waive one of the taxes imposed on fuel, which will eventually decrease the price by almost 20 per cent.

In addition, truckers will also be exempted from paying road tolls for trucks that travel empty and with some of their their axles lifted, and the government will also establish a minimum price for road freight.

The new measures were announced late Sunday night by Temer himself via a national radio and television network after a full day of negotiations at the Planalto presidential palace.