Haiti: Transporters Get Compensation for Fuel Subsidies Removal

On Wednesday, Prime Minister Henry Ariel's administration agreed with Haitian transport unions to set measures to compensate them for the increase in their operating costs caused by the elimination of fuel subsidies.

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Those compensations include the creation of a new oil market control institution that will be in charge of stabilizing public transport fares, regularizing wages of transport operators, controlling motor taxis, and issuing driver's licenses. The Haitian State will also replace conveyances in poor conditions to avoid traffic accidents.

On Dec. 8, Prime Minister Henry Ariel eliminated fuel subsidies worth US$1.5 billion, causing the price of a gallon to rise to US$2.5 for gas and US$1.8 for diesel.

The Haitian unions rejected this measure and took part in massive protests that force the Ariel administration to dialogue with them. Upon the agreement approval, some of its leaders continue to criticize that authorities have not yet approved selective subsidies.

"After this week, if the government does nothing about subsidies, we will set the prices for nationwide travel ourselves. We know that our people do not deserve this, but we cannot afford the government's irresponsibility," union leader Change Mehu warned.

Nevertheless, the Ariel administration continues to advocate for subsidies elimination, which will allegedly allow it to deploy more police officers on the streets to fight organized crime.

“Since oil is a cross-cutting product, its increase also affects the prices of basic goods,” economist Eddy Labossiere warned, adding that this situation is having harsh consequences for that most of the Haitian population, who currently live below the poverty line.