Mozambique has revoked a recent increase in the price of diesel fuel for private minibus taxis.
Police were accused of opening fire on protesters
The move follows a week of clashes between police and rioters that killed at least four people and seriously injured more than 100.
Transport Minister Antonio Mungwambe said the price of diesel would drop by 14% for minibus owners.
In the immediate aftermath of the riots, the government cancelled plans to raise transport fares by up to 50%.
During the demonstrations, crowds looted shops, destroyed vehicles and burned tyres and electricity poles.
The price of fuel was increased by 14% last month in response to rising prices on the world market.
Food prices have also increased as a result.
Analysts view the government move as a temporary measure while it works out a durable solution to the crisis.
"The key problem is people's low salary," transport operator Agostinho Matsinhe told the BBC at one of the terminals in the outskirts of Maputo.
"So, passengers are right when they complain and so are the transporters.
"Practically, the reduction in the price of fuel does not help much for both of us."