US embassy cable - 05TEGUCIGALPA1837

UNCLAS TEGUCIGALPA 001837 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR WHA/CEN, WHA/ EPSC, EB/ESC, DRL/IL, AND 
CA/ACS/OCS/WHA 
STATE FOR DS/IP/WHA - MFLYNN, DS/ITA - KHALL, DS/DSS/OSAC - 
CMEDEIROS 
TREASURY FOR DDOUGLAS 
COMMERCE FOR MSEIGELMAN 
ENERGY FOR IA 
DOL FOR ILAB 
 
E.O. 12958: N/A 
TAGS: ASEC, EPET, ECON, ELAB, PGOV, CASC, KSAC, HO 
SUBJECT: RAISING FUEL COSTS LEADS TO TRANSPORTATION STRIKE 
PARALYZING TEGUCIGALPA; GOH QUICKLY RETRACTS PART OF PRICE 
RISE 
 
 
1. (U) Summary. On Tuesday, September 6, 2005, both taxi and 
bus drivers blocked intersections and several main arteries 
leading in and out of Tegucigalpa to protest the raising cost 
of gasoline in Honduras. There have been unconfirmed reports 
of violence, including rocks being thrown at vehicles and 
shots fired at protesters blocking key intersections. Over 
the last several months, the public transportation sector has 
been pushing for fare increases, but government officials 
have not cooperated. After the 25 percent increase in 
gasoline prices to 85 lempiras per gallon (USD 4.50) on 
Saturday, September 3, the unrest in the public 
transportation sector was once again front and center. Bowing 
to "transportista" pressure, the GOH announced on the night 
of September 6 that prices would be reduced by 7 lempira 
(about 40 U.S. cents), which would yield a net increase of 10 
lemprias (a 16 percent increase) over pre-hike prices, but 
that offer has been insufficient to halt transport strikes 
and road closings by angry taxi drivers. End Summary. 
 
2. (U) Gasoline prices in Honduras, already the highest in 
Central America, took another jump this past weekend with 
price increases caused by Hurricane Katrina. By mid-morning 
September 6, the public transportation sector was out in the 
street blocking intersections and several routes in and out 
of the city. By the afternoon, there were scattered reports 
of rocks being thrown at taxi drivers who did not participate 
in the strike. Windshields were broken and passengers were 
taken out of the vehicles. During most of the day when these 
incidents took place, the police were no where to be found. 
Several reports of drivers angry with the traffic delays shot 
at demonstrators blocking intersections. RSO is still trying 
to confirm these reports. Yet, it appears a public, while not 
happy with the increase in gasoline prices, is more focused 
on the disruption of taxi and bus services. 
 
3. (U) As of early September 7, there are reports of roads 
into and out of Tegucigalpa being blocked, as well as several 
areas in downtown being blocked by taxis. So far, there have 
been reports of military and police located at several key 
intersections/overpasses in an attempt to keep traffic 
moving. Both international schools used by the Embassy are 
closed today because of the strike, as well as most other 
private schools and all public schools in the city. RSO is 
keeping American and local employees informed of the changing 
situation via radio reports and e-mails. All roads to/from 
the international airport are apparently blocked. Most 
protests organized by teachers' unions and the Popular Block 
protest organization are planned for September 8. 
 
4. (U) The security office will continue to monitor the 
situation and report any new developments. Should you have 
further questions please contact RSO Lizzi. 
 
5. (SBU) Comment: The issue is already a hot potato 
politically, with the opposition Liberal Party seizing on it 
to lambaste the Nationalist government. The rising cost of 
gas dovetails nicely with Liberal Party presidential 
candidate Manuel "Mel" Zelaya's message that average 
Hondurans have not benefited economically under the current 
Maduro Administration due to a growing cost of living and a 
lack of jobs. Meanwhile, National Party presidential 
candidate Porfirio "Pepe" Lobo, current President of 
Congress, has tried to distance himself from the Maduro 
Administration by joining Zelaya and others (most notably 
Catholic Church Cardinal Oscar Rodriguez) in calling for 
reductions in the price of gas. Lobo has gone as far as to 
threaten congressional action if the executive branch does 
not act quickly enough. End Comment 
Williard