MEM summons carriers to receive proposals, but those who block routes were not summoned

Representatives of several cargo and passenger transport unions met this Monday, November 21, with authorities from the Ministry of Energy and Mines (MEN) to analyze the impact that the high cost of fuels, mainly diesel, has on their operations. who delivered a list of requests to deal with the fuel crisis, that in Guatemala has motivated protests and roadblocks.

The carriers attended the appointment at the MEM at the request of said portfolio; however, heThe representatives of the unions that have participated in blockades were not summoned, Because in the opinion of the authorities, for there to be dialogue there should be no actual measures, but they assure that they will have a rapprochement in the next few hours.

Alberto Pimentel, Minister of Energy and Mines, explained that “The intention of the meeting was to follow up on proposals that the carriers offered to bring to the Government of the Republic to consider palliative measures in view of the increase in fuels and particularly diesel”,

“They express their concern about the increase in prices and the Ministry made a presentation related to the reasons behind the increase in prices that are none other than what is happening in international markets, and they also present us with a set of proposals for palliative measures, which will be considered, that is the offer,” Pimentel said.

Pimentel added that carriers “They are proposing the creation of a compensatory fund that will allow a time to have a maximum price for the product and that the Government pay fuel importers when that price increases”

In addition, the official said that the unions “have raised the temporary exoneration of the Value Added Tax (VAT) and Oil Distribution Tax (IDP), the agreement is that this will be transferred to the President of the Republic and the Cabinet

“Transporters are aware that the price of diesel worries them. but in which there is another series of circumstances associated with the transport of goods and people that must also be considered and They request that the Executive, through the Ministry of Communications, hear them on related issues with weights and dimensions, issues also related to fixing landscapes and even times in which they can circulate”.

According to Pimentel, on this occasion the unions that participate in blockades were not summoned, but he assures that they will do so in the next few hours, once it is confirmed that they actually deposed the measures.

“Today these groups that we understand do not belong to the unions that participated today were not summoned, there has been some approach with the group of those who have maintained blockades and it is likely that we will meet with them tomorrow. The Government asked them that for a dialogue to be fruitful, good faith had to be shown and that good faith is to depose the measures in fact, ”said Pimentel.

Regarding the most viable proposal, Pimentel said that it is “particularly that of the compensatory fund, that of its tax exemption, the Government continues to think that it is not an entirely correct measure, Why does it mean sacrificing income?

“The agreement is that this will be transferred to the President of the Republic and the cabinet. We could meet at the end of this week to come up with a revised proposal, and integrate other government institutions that are or have something to say about the proposals”, Pimentel explained.

Meanwhile, José Ramírez, director of the Guatemalan Chamber of Transport and Cargo, pointed out that it is premature to talk about results with a first meeting with the authorities, but said that “there is a will” and that what is intended is to solve the problem.

“What we want is to understand the reason for the rise, but it is an issue that is not going to be resolved today, we are going to wait for the indications”, concluded Ramírez.

What do they pose?

• Temporary exemption from the Value Added Tax (VAT) and from the Oil Distribution Tax (IDP) for diesel.
• The creation of a compensatory fund that sets maximum prices for diesel and when that price is exceeded, the government pays the difference to importers.

What will the government analyze?

Pimentel explained that at the Government level they are analyzing the possibility of the subsidy, as well as the idea of ​​a compensatory fund for diesel, like the one proposed by the carriers.

“The subsidy is a (proposal) that we already know how it works and the compensatory fund is the one that is being fine-tuned. There is a reality, that, finding ourselves at the end of the budget period, the availability of resources must be evaluated well ”, Pimentel said, although he added that the measure they take must be in the short term.

Also, He said that at the moment they cannot define if it will be a single measure that will be applied or if it will be a set of provisions. However, they do not see the tax exemption as “correct”, although they assure that the proposal should be analyzed.

The official explained that the price of fuels has registered a decrease that generates some “relief” to the subject.