Ecuador suspends monthly fuel price hike

The President of Ecuador, Guillermo Lasso, said on Friday that it will suspend the monthly rise in fuel prices and that it decided to establish fixed values ​​for the sale of extra gasoline and diesel.

Lasso’s decision follows pressure from indigenous and social organizations, which had called a national protest for next week in rejection of the increase in fuel prices, as well as the government’s economic and social policies.

“I have decided that from today the monthly increases in fuel prices are suspended,” said Lasso, in an intervention by his official accounts.

“From now on the price of extra gasoline is set at $ 2.55 per gallon and in the same way the price of diesel for public, community, school, tourism, heavy load, mixed transport and for the general public will be set to 1.90, “he added.

Before the announcement, the prices of extra gasoline, which has the highest consumption in Ecuador, and diesel were set monthly through a fluctuating system based on the price of oil, which has led to a significant increase in recent months.

The model was adopted by former President Lenín Moreno in May 2020, months after violent protests by indigenous people and social organizations forced his government to back down from its intention to eliminate fuel subsidies as part of an austerity plan.

The new prices set are slightly higher than those in force for this month.

“We have listened to you, the citizens, and also to the social and political sectors to generate agreements that lead us to a stable environment, in which the economy can grow and generate employment,” Lasso added.

The president added that the economy with liquidity problems and hit hard by the pandemic “is starting its engines and is beginning to see the dynamism that is required” to generate sources of employment.

The government has held dialogues with different sectors, including indigenous groups, on the measures promoted by Lasso for the economic reactivation of the country.

The president also said that he will enforce without exception the official prices of the products that make up the basic basket, in an attempt to protect the family economy.