Diesel for land transport is $ 1,037 in Ecuador

Ecuadornews:

The National Government had to issue a new executive decree, 632, to clarify that the price of diesel for the automotive sector will be $ 1,037 a gallon.

The decree indicates that the retail price at national service stations of diesel 2 and premium diesel “for the automotive sector, specifically public and commercial land transport vehicles, and private vehicles, for which there will be no restriction of quotas, and for domestic amounts, is $ 1,037. “

The issuance of the decree is made concrete after meetings with several transport sectors such as heavy, school, among others, which opposed the rise in the cost of diesel, scheduled for January 15, according to Decree 619, issued last December.

The document was released on Tuesday morning and hours later, in Quevedo, Abel Gómez, leader of the National Federation of Public Transport Cooperatives, announced in a meeting with all sectors of the transportation to diesel, that the value of $ 1,037 it stays for them. “This does not have a destabilizing effect on the government; on the contrary, it is a wake-up call to certain erroneous decisions that are made in the financial part that affects Ecuadorians.”

Jorge Calderón, of Fedotaxis, ratified that since Friday they started with the delivery of documentation to be applied the compensation by categories.

That decree, apart from the diesel issue, regulated the prices of extra and eco gasolines, which rose to $ 1.85, and the super whose price was liberalized.

After the enactment of the new Decree 632, issued on January 7, the only transportation sector that will have a diesel according to Petroecuador’s cost recovery (without subsidy) is the international flag. This will have a higher price, but does not mean a radical change because this type of transport was already charged a more real price, since they can only be supplied in 14 service stations on the border, for several years.

On the change of position of the Government on the price of diesel for the automotive sector, Luis Calero, an expert on energy issues, said that it is part of the improvisation with which the issue has been addressed. He explained that before taking such an important step, the negotiation should have been ready.

The new decree does not alter other decisions on fuel prices that were adopted in 619.

In that decree, it had been established that the cost of diesel for the tuna and shrimp fishing sector would rise from January 15. In this sense, the option remains. However, there are currently dialogue roundtables through which compensation or quotas could be set for these sectors.

Yesterday, the Ministry of Energy and Natural Resources not Renewable explained that just meetings were being held between authorities and these sectors on the subject.

Costs for other sectors

Industrial: The price of diesel for the industrial sector is established in Executive Decree 338. The subsidy was withdrawn in October 2015; and its calculation methodology is based on Petroecuador’s cost recovery.

Shipping company: The price of diesel for the shipping sector is also set by Executive Decree 338. It is defined based on cost recovery.

Difference: The difference between diesel 1, 2 and premium is the chemical composition and parts per million sulfur. Each fuel has different costs. (I)

Source: https://www.eluniverso.com/noticias/2019/01/09/nota/7129352/diesel-transporte-terrestre-queda-1037