Ecuadorian Government Would set Quotas for Gasoline

Last Thursday night the Ecuadorian President Rafael Correa announced that the government is working on a quota system for the use of gasoline. “It’s a project to control the waste of fuel,” explained Correa. The idea is to set a quota for each family with 30 gallons per year. Any extra fuel purchase would be with the market price.

However the quota of 30 gallons per year per family would be insufficient since a family spends 20 gallons per month, which means $40 in fuel at least. The quota of the 30 gallons per year would be handled with electronic cards, which would monitored by a Uruguayan company.

Correa also explained that the quota system would also control the waste of gas. This control could be approved this year, but it would start working in 2013. President Correa explained that the current subsidies favor only the rich and not the poor. (AV)