MercoPress. South Atlantic News Agency

Chilean truckers end strike following fuel tax rebate

Chilean truckers lifted on Friday a national strike against high fuel prices that threatened the supply of basic goods hitting food and fuel supplies to retail customers and the key copper mining industry.

The strike started on Tuesday, with thousands of Chilean truckers lining highways up and down Chile's 4.300 kilometers length to protest high fuel prices. "From the point of view of the government it was imperative for this protest to end because it was affecting the normal supply and functioning of the country," Francisco Vidal, the government's chief spokesman, told reporters. The strike saw a freeze on the movement of many goods within the country, leaving some gasoline stations without fuel and supermarket shelves without fresh produce. The protests started a day after the government announced a new one billion US dollars fuel price stabilization fund. Truckers called it a band-aid that would do little to fix their woes. The strike was lifted following an agreement to significantly cut taxes on diesel, which according to Finance Minister Andres Velasco will cost the treasury 52 million US dollars in 2008. Although the fine letter of the understanding still has to be drafted beginning next July first the diesel specific tax will be cut by 80% until June 30, next year. There's also a commitment to elaborate a Transport Cost Index beginning January 2009 to monitor the sector's costs and the possible creation of some sort of insurance to stabilize fuel prices. However Senate sources involved in the agreement with the truckers said the tax was to be eliminated entirely beginning July 2009, and promised to keep lobbying for a similar treatment for all fuels.