Haiti halts gasoline subsidy
AP , Port-au-prince: Jun 27 2008
Made Popular Jun 27 2008

Cuts in Haitian gasoline subsidies pushed the price of fuel to $6.14 a gallon on Thursday, further burdening an impoverished people as the government redirected money to other programs.

The 80-cents-per-gallon increase was felt immediately in the struggling country where 80 percent of people live on less than $2 a day.

Gasoline subsidies were implemented by President Rene Preval to prevent instability after April riots over the high cost of food that left at least seven dead and resulted in the dismissal of the country’s prime minister, who has not yet been replaced.

But the cash-strapped government could not maintain assistance that totaled an estimated $15 million over three months while also providing agricultural assistance and other programs meant to combat the country’s ongoing food crisis, Haitian economist Kesner Pharel said.

Preval could “pay some political price” for allowing the increases.

“It’s a difficult choice but ... if you keep losing money like that you have a price to pay in the medium and long term,” Pharel said.

Port-au-Prince’s public taxis, or “tap-taps,” raised fares to cope with fuel costs, prompting arguments with passengers.

“The passengers don’t want to pay. We have to fight with them,” said 46-year-old Molier Benoit, whose syndicate doubled its fares to 12 gourdes (31 cents) per ride in a metal frame built onto the back of a rickety pickup truck.

The higher prices are also increasing expenses for international organizations as they patrol the country’s streets in armored vehicles and transport food aid to remote rural communities.

“It is affecting our budget,” said Sophie Boutaud de la Combe, spokeswoman for the 9,000-member U.N. peacekeeping mission that has been based in the country since 2004.

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