The about-face came just hours after prime minister, Lafontant, made an impassioned televised appeal for patience on Saturday, and tried to convince people of the need to raise fuel prices.
The capital Port-au-Prince has been paralysed since Friday afternoon, with major routes blocked by barricades, some made of burning tires, and some protesters even calling for a revolution in the impoverished country.
Just before the suspension was announced, the leader of Haiti’s lower house of parliament had threatened a government takeover if the fuel price increases were not reversed.
The fuel price hike had only been announced on Friday, while many Haitians were engrossed in a World Cup football match.
The seven casualties were reported following looting in the capital, Port-au-Prince.
Similar angry protests broke out in Cap-Haitien, the second-largest city, as well as in the communes of Les Cayes, Jacmel and Petit-Goave.
The troubles were sparked by a government announcement that fuel prices would rise by 38 per cent, diesel by 47 per cent and kerosene by 51 per cent starting this weekend.
Protests prompted several major airlines, including American, Air France, Delta, Jet Blue and Copa, to cancel flights to Port-au-Prince.