Economics
Brazilian Truckers’ Strike May Shape Presidential Election
- State-run oil company announces 10% cut in price of diesel
- Strikes reveal broader insatisfaction with market forces
Truck drivers gather on BR 040 highway during a protest against rising fuel prices in Luziania, Brazil, on May 23.
Photographer: Andre Coelho/BloombergThis article is for subscribers only.
Brazil’s state-owned oil company Petroleo Brasileiro SA announced a 10 percent cut in the price of diesel, in an effort to end a three-day nationwide truckers’ strike that has wrought havoc on Latin America’s largest economy.
Petrobras Chief Executive Officer Pedro Parente disclosed the last-minute decision at a press conference in Rio de Janeiro Wednesday night, saying the prices would be kept unchanged for 15 days to allow the government some time for a resolution to the dispute over fuel prices. Union representatives had earlier rejected as insufficient the administration’s promise to scrap one of the taxes on diesel.