Huancayo: two people were hit during transport stoppage

Today marks two days of the indefinite stoppage of carriers against the rise in fuels. In Pilcomayo, in the Huancayo region, there was an accident where a young man was hit by a car that was later on the run.

This is an incident that occurred this morning, where a red van was trying to pass through the area was intercepted by the demonstrators' tuba. The driver, not foreseeing that there were two people behind him, apparently trying to fix the tire of his own vehicle, backed up and ended up running them over.

The protesters then tried to stop the vehicle and lower its tires, but the driver continued to try to escape.

The status of the people hit is reserved, but it is known that they were transferred to the health center in the area. In addition, protesters from the region remain in various parts of the city and sections of the central highway.

WHY DO CARRIERS PROTEST?

On March 28, the National Guild of Freight Carriers (GNTC) began an indefinite strike throughout the country.

It was reported that in Lima, protesters blocked both lanes of the Pasamayo coil, at km 70 of the North Pan-American Highway. In Piura, carriers took the Pan-American North Highway, a stretch to Chiclayo, km 21 of the Las Lomas highway and the road that connects the Canchaque-Huancabamba areas, as well as access to the province of Sullana. On the other hand, the Sutran also reported interrupted roads in Ica, San Martin, Cusco and Ayacucho.

The reason for this strike is the rise in fuel prices. Among its demands is also the elimination of the Selective Consumption Tax (ISC) that weighs on gasoline.

Hector Velasquez, president of the GNTC, said that high fuel prices mean that freight charges continue to be charged for cargo, which makes it difficult for them to continue operating. So far in 2022, according to Petroperu, wholesale prices for major fuels have increased by more than 37%.

This price increase has been sustained since 2021 and is driven by increased energy demand following the global economic recovery. This was rebounded by Russia's invasion of Ukraine and subsequent sanctions. In March alone, fuels became more than 17% more expensive in Peru.

Carriers also claim that the price of B5 UV diesel, its main fuel used, is also affected by the situation, despite the fact that it is included in the Fuel Price Stabilization Fund (FEPC). This means that it is subsidized by the State.

Its wholesale price has remained at S/16,0362 per gallon since March 3, according to Petroperú's weekly reports. But, at gas stations, the difference between the maximum and the minimum price exceeds S/10 in Metropolitan Lima.

For the former president of Petroperú, Humberto Campodónico, this distortion is due to the fact that the FEPC “is a price that is calculated at the mouth of the refinery” and does not consider wholesale and retail transportation costs until it reaches the tap.

In that sense, there are no restrictions. The subsidized price paid in refineries does not reach the end user and “the tap margin is free”. In addition, he points out that due to the high volatility of fuels, the State “should have some kind of regulation” in this market, as is the case in Colombia. “Colombia establishes, through talks with the taps, even of a legal nature, a cap on the profit that the tap can have,” he says.