Norbey Rodriguez /[email protected]
This Friday began with the end of the truckers‘ strike throughout Colombia, after an agreement was reached between the national government and the truckers, where it was agreed to gradually raise diesel to $800, after eight hours of negotiation, with one increase now and the second in December.
Between 9:00 pm on Thursday and 5:00 am on Friday, the third meeting between government representatives and transporters took place amid the strike over the increase in the price of diesel, which has caused problems with the supply of food, medicines and fuel throughout the country.
This night meeting produced an agreement, after confrontations, shouting and accusations between the government and transporters, where the Ministries of Transport, Finance, Labor, Mines and Energy and Interior and the transporters participated, who agreed that diesel will increase $400 now and $400 in the month of December, eliminating the increase of $1,904.
All additional increases proposed by the Government are suspended until a discussion takes place on the structural issues of the sector.
The agreements include the archiving of criminal proceedings and the cancellation of administrative sanctions imposed on transporters who exercised their legitimate right to protest, as well as the creation of several working groups to resolve the problems facing the sector.
Despite all the conflict and a temporary solution, food prices increased, the family basket was affected and this September sees a considerable increase in the family basket.
Genesis of the conflict
The conflict began with the government’s increase in the price of diesel by $1,904 last week, which was cancelled. It was agreed that two more increases would be made to raise the price of this fuel by $6,000 in total and thus close the gap that currently exists with international prices, a decision that triggered the transporters’ strike.
The strike began on Tuesday, with no agreement on Tuesday or Wednesday, and at the end of the day it was proposed to reverse the increase of $1,904 and make an increase of $200 per month until December, reaching $800, but the unions rejected that option and warned that they would only accept an increase of $400.
For her part, the Minister of Transport, María Constanza García, stated at the last meeting that after all the meetings she was able to get a broad overview of the situation in the sector and recognize that work needs to be done on several issues, but she reiterated that the Executive’s final proposal is to raise the price by $800. “It is the minimum, it is 13% of what the Government expected. It is no longer a bargaining game, the Government has already set its limit.”
Diesel will increase by $400 now with a first increase and the second, also by $400 in December.
The transporters not only took the opportunity to request that the diesel price increase be cancelled, they also asked for greater safety on the roads, improvements in rates and freight, tolls and labour guarantees.
Gustavo Petro‘s government had on its agenda to address all these proposals in order to be able to increase the price of diesel, to prevent the deficit of the Fuel Price Stabilization Fund (FEPC) from continuing to grow, to the detriment of public finances.
To understand a little what affects the Government’s finances in 2022, the FEPC deficit was $36.7 billion, $20 billion of which corresponded to diesel; in 2023, it was $20 billion, $15.2 for diesel. This year, if no adjustment had been made, $11.6 billion would have had to be allocated.
Comparison is the most effective way to measure the impact. With the $36.7 billion allocated in 2022 for the FEPC, according to data from the Ministry of Finance, more than 25,700 kilometers of new tertiary roads could have been built; this amount would be enough to provide 851,000 VIP and VIS housing subsidies with a contribution to the initial fee and with full coverage of the interest rate, or to cover with a monthly transfer (equivalent to the extreme poverty line) 7.7 million people living in poverty.
Virtually 100% of people living in extreme poverty could have received a monthly transfer equivalent to the poverty line for two years with that money.
With Friday’s agreement, the price for small consumers will rise by $800 this year and an adjustment of $5,200 will still be pending, which shows that there is still a lot of work to be done with the fuel price tension in Colombia.
Border with Venezuela shows mobility
Despite the truckers’ roadblocks in Villa del Rosario and Lomitas, the borders of Ureña, San Antonio and Tienditas continued to flow normally with both Colombian and Venezuelan vehicles, which suffer from fuel shortages in Colombia and Venezuela.
On the ring road in Cúcuta there are service stations that supply fuel that serve Venezuelan vehicles and that in some way help to solve the fuel crisis in Táchira. With these measures to increase fuel prices, it is still an option to fill up on fuel in Cúcuta, both gasoline and diesel.
Hoping that the progressive increases in fuel prices in the neighboring country do not limit supply and can continue to be an option for border residents.
Mobility in Cúcuta is reestablished
Following the transport strike, mobility returned to normal on Friday in Cúcuta, on the roads and at the Cúcuta Station Transport Station.
All routes and transport companies operating in Cúcuta to and from the city terminal are providing their services regularly, thus ensuring the mobility of users. However, it is important to report that there are congestion and delays on the routes that connect Cúcuta with Bucaramanga and Ocaña, due to the high traffic flow on these roads.
The overall balance of losses in terms of mobility due to the five days of strike is:
The Cúcuta Transport Terminal experienced a loss of 65 million pesos in operations, directly affecting the administrative and transport company operations.
The commercial sector of the terminal reported losses totaling 200 million pesos, impacting businesses and employees who depend on the daily activity of the plant.
#Truckers #strike #Colombia #leaves #high #prices #blows #border #economy
2024-09-07 19:21:31
What were the key points of the agreement reached between Colombian truckers and the government to end the strike?
Table of Contents
Truckers’ Strike in Colombia: Agreements Reached, Food and Fuel Shortages Averted
After days of road blockades and negotiations, the Colombian government has reached an agreement with truckers, putting an end to the nationwide strike that threatened to cripple the country’s supply chain. The deal comes as a relief to citizens, who were facing food and fuel shortages due to the strike [[2]].
The Agreement
The agreement, reached on Friday, will see a gradual increase in diesel prices, with a $400 hike now and another $400 increase in December [[1]]. This compromise averts a proposed increase of $1,904, which had sparked the strike. The government has also agreed to suspend additional price hikes until a discussion takes place on the structural issues facing the transport sector [[3]].
genesis of the Conflict
The conflict began when the government proposed a diesel price increase of $1,904 last week. The transport sector, which was already facing difficulties, was outraged by the hike, which
– What were the main causes of the truckers’ strike in Colombia regarding diesel price hikes?
Colombia Truckers’ Strike: A Tale of Diesel Price Hikes and Supply Chain Disruptions
The recent truckers’ strike in Colombia, which began on Tuesday, has finally come to an end after an agreement was reached between the national government and the truckers [1[1]. The strike, which was sparked by a diesel price hike of $1,904, had caused widespread disruptions to the supply chain, leading to food and fuel shortages across the country [3[3].
The Genesis of the Conflict
The conflict began when the Colombian government announced a diesel price hike of $1,904, which was met with strong opposition from the truckers’ unions [1[1]. The unions claimed that the price hike would significantly increase their operating costs and affect their livelihoods. In response, the truckers went on strike, blocking roads and highways across the country, causing supply chain disruptions and shortages of essential goods [3[3].
The Agreement
After eight hours of negotiation, the government and the truckers’ unions finally reached an agreement to suspend the strike [1[1]. Under the agreement, the diesel price will be increased by $400 now and another $400 in December, eliminating the original increase of $1,904. Additionally, all additional increases proposed by the government are suspended until a discussion takes place on the structural issues of the sector. The agreements also include the archiving of criminal proceedings and the cancellation of administrative sanctions imposed on transporters who exercised their legitimate right to protest, as well as the creation of several working groups to resolve the problems facing the sector.
Impact on the Economy
The strike and the subsequent agreement have had significant impacts on the Colombian economy. Food prices have increased, and the family basket has been affected, leading to a considerable increase in the family basket this September [2[2]. The reversal of the diesel price hike is also expected to affect public finances, with analysts warning that it could put the brakes on interest rate cuts and stoke inflation [2[2].
Conclusion
The Colombian truckers’ strike has highlighted the challenges facing the country’s transportation sector and the need for the government to engage in dialogue with stakeholders to address their concerns. While the agreement has brought an end to the strike, its impact on the economy and public finances will be felt in the coming months. As the country moves forward, it is essential to find a balance between the need to increase diesel prices to keep pace with international
