Despite deal, truckers still protest at federal highways

Police in Brazil announced this morning that the truck drivers rallying on highways across the country did not disperse, even after a deal was reached with the government Thursday (May 24).

In São Paulo, pickup trucks and trucks are still seen lined up by the curb. This is also the case in the states of Paraná, Santa Catarina, and Rio Grande do Sul, where protests are being staged in 74 locations. In the Federal District, the police reported demonstrations on four highways.

In Brasília, drivers still queue near gas stations which have extra stocks of gasoline and diesel.

In Brasília, drivers queue near gas stations - Marcelo Camargo/Agência Brasil

The agreement

In the deal forged last night between the government and the truck drivers’ representatives, the stoppage is to be suspended for 15 days. Petrobras, in turn, agreed to keep the 10% reduction in the diesel price at the refineries for 30 days, while the government seeks ways to cut prices. Petrobras is reiterating its commitment to cover the discount—estimated at over $95 million—in the first 15 days. The following 15 days will be financed by the government.

The government also pledged predictable monthly prices by the end of the year, with no changes to Petrobras’s pricing policies, and will also subsidize the price differences from prices fixed by the firm each month. “When the diesel price at the refinery drops and stays under what has been set, Petrobras has a credit that reduces the costs of the Treasury,” Finance Minister Eduardo Guardia said.

Representatives from truck drivers’ associations call for the end of the tax burden on diesel. They expect the Senate to approve the exemption from some taxes on diesel up to the end of the year. The matter was approved yesterday by the lower house and should now be submitted to the Senate. Should it be approved, the exemption from these taxes will have to be further sanctioned by the president.

*Further reporting by Marcelo Brandão