By: Staff Writer
July 22, 2022
Protesters have taken to the streets in Panama for the third straight week and are calling for President Laurentino Cortizo to resign over high gasoline prices, rising inflation and corruption.
Despite talks between the government and union leaders on how to come to an amicable agreement over the economic challenges this past weekend, there were fresh demonstrations and roadblocks in Panama on Monday as protest groups turned their backs on a deal signed with the government to end their protest in exchange for a fuel price cut.
After union leaders consulted grassroots supporters on the deal announced Sunday, it was decided to continue the protest, said Luis Sanchez, a leader of the Anadepo civic grouping.
With the latest deal being rejected by union leaders, this means the protests would have been ongoing for the past three weeks. It has also ended up with police officers being taken hostage along with roads and highways being blocked.
The closures, including of the Pan-American Highway, have forced the national electric company to ration electricity in Darien province, which borders Colombia. Tankers carrying gas to run the power generation plant cannot arrive. Some 7,000 families have been affected by the reduction of electricity to 11 hours daily.
The latest protests come as Panama battles an inflation rate of 4.2 percent in May; unemployment numbers of about 10 percent; and an increase in fuel costs of almost 50 percent since January.
While Panama’s use of the dollar has protected it from some of the inflation seen in countries that have also experienced a depreciation of their currencies, price increases have left many — in what is one of the most unequal nations in the region — struggling to cope. The average cost of the basic food basket, including items such as cheap meat and vegetables, increased to $280.71 in May, a yearly rise of $13.93. Gas prices have risen from $3.73 per gallon in January to $5.75 in July.
Teachers were the first group to demonstrate at the start of July but they have since been joined by other groups, including construction workers, students and members of Indigenous groups.
Initially, the protesters called for the freezing and reduction of fuel prices, a price cap on food and an increase in the budget for education, but the demands have since widened to include a national negotiation to address political corruption and discuss larger political reforms.
Cortizo’s administration agreed on Sunday to further reduce the price of gas from $3.95 to $3.25 per gallon, a stark contrast to June’s $5.20 per gallon. But the move was not enough to appease the demonstrators, who erected new roadblocks and pledged to continue protesting.
He also announced a reduction in the price of fuel and plans to cap the price of 10 basic products, but the demonstrators continue to hold out for cuts in the prices of some 40 consumer products and medicines.