On Eve of Truckers’ Strike, Federal Government Announces “Diesel Aid” Aiming to Benefit 750,000 Truckers, but Fails to Please the Category

The Federal Government’s ‘Diesel Assistance’ May Be a Solution to Avoid Truck Drivers’ Strike, but They Are Still Unsatisfied with the Current Situation Brazil Is Facing

In order to avoid a possible truck drivers’ strike, on Thursday (21), President Jair Bolsonaro (without a party) stated that the Federal Government intends to create assistance directed to truck drivers due to the high cost of diesel fuel. The truck drivers are part of President Bolsonaro’s support base. The head of the Executive reported that this measure will benefit around 750,000 truck drivers, but has not yet mentioned the values and where the funding for this benefit will come from. It is estimated that the Federal Government may pay up to R$ 400 to the truck drivers until December 2022. It is possible that the funds for the assistance will come from the space created within the 2022 budget, with a revision of the methodology for calculating the spending cap.

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Diesel Assistance for Truck Drivers Will Compete for Funding with Money for Vaccines, Bolsa Família, and Other Federal Government Assistance

The Caixa Econômica Federal will be responsible for operating the ‘Diesel Assistance’. Participants in the negotiations stated that the maneuver around the spending cap was “arranged” by the government to include the R$ 400 Brazil Assistance in the budget, as mandated by the president. This new change could open up at least R$ 83 billion in 2022, when Jair Bolsonaro will likely run for re-election.

The new calculation is already on the PEC of Precatórios and the report has already been read. If approved, the Federal Government intends to use part of the R$ 15 billion that will arise within this year’s budget to fund the ‘Diesel Assistance’ for truck drivers. The remaining funds will pay for Brazil Assistance and vaccines.

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During the meeting at the Palácio do Alvorada, Bolsonaro demanded that the responsible technicians find solutions for the successor to the current Bolsa Família, as he wished, and also reaffirmed that he wanted a fuel assistance program.

Rising Fuel Prices Generate Discontent Across the Country, and the Government Blames International Fuel Prices

The price of fuel has fluctuated in recent weeks, rising from R$ 4.961 to R$ 4.976, causing dissatisfaction among consumers using vehicles throughout Brazil. According to Jair Bolsonaro, the increase in fuel prices is due to foreign prices.

The announcement of the diesel assistance for truck drivers comes at a time when the financial market speaks negatively about the high possibility of the federal government failing to comply with the spending cap to fund the Brazil Assistance program, which will replace Bolsa Família. The Brazil Assistance is seen as a key element to boost Bolsonaro’s popularity in 2022.

On the Brink of a Truck Drivers’ Strike, Assistance May Be a Key Element to Reverse This Situation

With the truck drivers’ strike scheduled for November 1st, it is possible that Bolsonaro is working to provide the ‘Diesel Assistance’ to truck drivers not only because they are part of his support base but also as a way to avoid or even reduce the expected duration of the strike.

The urgency for the assistance to be approved is incomparable to the emergency assistance or the purchase of vaccines. With the truck drivers’ strike approaching, the assistance promised by Bolsonaro may reverse this situation.

The head of the federal Executive reinforced that truck drivers will receive cost aid, as the price of diesel is quite high. He stated that despite the difficult moment, the federal government does not intend to leave anyone behind. Finally, he concluded by saying that they will also do this because it is through them that food and supplies reach every corner of the country, so a truck drivers’ strike must be avoided. Despite this, truck drivers remain dissatisfied.