Ecuador allocates more resources for fuel subsidies
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Loading... - Adolfo Lopez
- 16 Mar 2022
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If the price of crude oil remains high, additional income can be projected for the Treasury . But subsidies will also be increased, which can reach USD 3 billion until the end of 2022.
In Ecuador, the price of the supermarket was released in 2018 and is set every month, according to market conditions. While those of the extra, ecopaís and diesel have been frozen since last October.
The subsidy is determined, according to the variations in the price of fuel . In this case, the amount of the subsidy went from USD 0.34 to USD 0.55 per gallon for extra gasoline, as of the 12th of this month. While the premium diesel subsidy rose from USD 0.90 to 1.14, according to the National Chamber of Distributors of Petroleum Derivatives of Ecuador (Camddepe).
This difference must be covered by the Government , for the commercialization of imported fuels , which represent 60% of what is consumed in the country.
As a result of the pandemic , a reduction in fuel consumption was recorded. In the automotive sector , demand fell by 30%, according to Camddepe. Due to the reactivation, it has recovered due to the greater requirement for the mobilization of people.
Due to this situation, the price of crude oil has also increased since last year and has a constant rise due to the conflict between Russia and Ukraine. With this, the price of a barrel of oil from Texas (WTI), a benchmark for Ecuador, exceeds USD 100. These variations are evidenced in the internal marketing values ​​of imported derivatives. Read More...
