Subsidy removed

[NewsWhore]

As a result of the impromptu fare increase the Ministry of Industry and Commerce has ordered the Department of Hydrocarbons to remove the fuel subsidy to the bus unions who unilaterally increased bus fares. The government had been threatening to remove the subsidy as a way of keeping fares down. Industry and Commerce Minister Melanio Paredes said that the government subsidizes fuel in order to keep prices low for poorer passengers. Paredes is quoted in Hoy as saying, "no one, especially the transport unions, can apply the law of the jungle". FENATRANO union leader Juan Hubieres said that if the government removed the fuel subsidy he would be forced to present new fare increase to cover his union costs. Listin Diario reports that his bus union receives 400,000 gallons of subsidized fuel per month. The CNTU bus union has decided not to go ahead with its fare increase.

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