Strike-Hit Ivory Coast Cut Fuel Price, Cabinet Pay

The price of diesel saw the biggest cut, falling 100 francs to 685 francs per litre.

Ivory Coast's government agreed on Sunday to cut the fixed price of diesel fuel to partially offset a hefty rise earlier this month that caused a disruptive transport strike last week in the world's top cocoa grower.

Prime Minister Guillaume Soro said the price cut and other concessions to transporters would cost the state 200 billion CFA francs ($484 million), and government ministers' pay would be cut in half as part of efforts to make good the shortfall.

Soro, who met union leaders on Saturday, announced the measures at a news conference late on Sunday after an extraordinary cabinet meeting chaired by President Laurent Gbagbo approved the moves.

The price of diesel, which the government raised earlier this month by 44 percent to 785 CFA francs ($1.90) per litre, saw the biggest cut, falling 100 francs to 685 francs per litre, he said.

That and other concessions, including a 6-month extension of the deadline for payment of road tax, would help reduce the cost of transport and combat food price inflation, Soro said.

"These efforts drawn up and agreed by the government amount to 200 billion CFA francs, which will have to be found from somewhere," said Soro, a former northern rebel leader who was appointed prime minister last year under a deal to reunite the country after a 2002-2003 war.

"As a result we have decided to reduce state expenses, starting with cutting by half salaries for all government ministers ... and managing directors of state or parastatal enterprises," he said.