Brazil: President Michel Temer reduces diesel price as measure to end crippling strike

Days after Brazil government reached a deal with transport union which was rejected by Brazilian Association of Truckers rejected the deal Brazilian President Michel Temer lowered the price of diesel on Monday in second attempt to end the truckers' strike which continued for seven days.

The diesel prices have been cut by 46 Brazilian cents ($0.13) per litre which would be maintained for 60 days.

The diesel rates the would be adjusted monthly.

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It has also signed a bill which will allow truckers not to pay the toll on rear axles when not in use.

President Michel Temer announced this in a televised speech.

However, there is no confirmation on whether the truckers' has accepted the government's agreement.

The country whose economy runs largely on road transport was crippled for a week after truckers' union was on strike.

The demonstrators are protesting against the rising diesel prices, as they blocked main roads in nearly all states of Brazil which already has limited rail services.

Following the strike airports and gas stations were running out of fuel as well as agricultural exports was also hit. 

Air services were also affected. According to reports, Brasilia, the capital of Brazil allowed landings of the planes which had enough fuel to take off again. 

Various abattoirs had also halted operations, affecting a key export sector. 

Following the supply problem people also faced a hike in prices of fruits and vegetables. In some places, prices were reportedly hiked up to 400 per cent.

Pump prices were also higher as long lines were formed at many gas stations.