Ecuador Increases Gasoline Prices Amid Controversial Subsidy Cuts
The Ecuadorian government announced on Tuesday the elimination of the subsidy on Extra and Ecopaís gasoline, resulting in a price increase of $0.26 per gallon, raising the cost from $2.46 to $2.72. This change will take effect at the end of June.
Deputy Economy Minister Ana Cristina Avilés stated that the price per gallon (3.8 liters) of 85-octane gasoline will rise as subsidies are reduced. However, exemptions will be provided for the transport sector and other specific groups. The government has established a database to ensure due compensation for transporters.
Previous attempts by the country's two former presidents to eliminate fuel subsidies resulted in violent protests, primarily led by the Conaie Indigenous organization, which is credited with unseating three Ecuadorian presidents between 1997 and 2005.
The current government, led by President Daniel Noboa, has confirmed that subsidies for domestic gas and diesel will remain. Activist groups claim the government's move to phase out fuel subsidies is influenced by pressure from the International Monetary Fund, which recently approved a $4 billion loan for Ecuador. The government denies this allegation.
