MercoPress. South Atlantic News Agency

Paraguayan truckers to lift protests if stabilization fund bill is approved

Borrowing to subsidize mercurial fuel prices may not be the best solution, long term

A group of union leaders representing Paraguyay's lorry drivers Thursday announced they would lift the road blockades if the Senate passes the bill to create a fuel price stabilization fund.

Union leader Darío Toñánez also said the case had been discussed with Congress Speaker Óscar Salomón.

The Senate is to hold an extraordinary session Friday exclusively to debate this issue.

The stabilization fund is intended to consist initially of US$ 100 million from a banking loan which will be allocated monthly to diesel expenditures (US$ 25 million) and gasoline (US$ 10 million).

“The idea is that this loan is used in times of need and when this happens, because the rise in fuel fluctuates a lot these days, then, this credit is charged again and the US$ 100 or 120 million is always maintained, it is a permanent fund,” Salomón explained.

He added that the fund will be administered by the state-run oil company Petropar. A briefing was to be held shortly with the participation of truck drivers, senators, and members of the Economic Team. During the meeting, the scope of the intended law will be explained.

Salomón also pointed out that had been promised by demonstrators that they would lift the road blockades pending the parliamentary debate, while Toñánez insisted protesters would remain active.

The president of the Tobatí Truckers Association mentioned that they also met with the Senate's Deputy Speaker Sixto Pereira, of the Guasu Front, which is said to oppose further borrowing.

He reiterated that the protests were not the claim of a sector, but that they were seeking that the cost of diesel is reduced to everybody. “We will continue at our post, the intermittent blockings have the support of the citizenry,” Toñánez stressed.