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Government highlights “positive effect” after stop subsidizing super gasoline”
Posted On 03 Oct 2018
Ecuadornews:
The Ecuadorian government plans to meet the target of savings expected until the end of 2018, after the withdrawal of a subsidy for gasoline with a higher octane rating (super) and to reach around $ 100 million in this concept, informed the head of Economy and Finance, Richard Martínez.
“Throughout the year it will meet nearly $ 100 million annually that the State is saving, was one of the objectives,” said the minister at a press conference at the presidential palace in Carondelet, Quito.
On August 21, the President of the Executive, Lenin Moreno, announced a series of economic measures aimed at optimizing resources and obtaining liquidity, among which he eliminated the subsidy for super gasoline.
By virtue of a subsequent presidential decree, the Government decided to update the price of that type of fuel to $ 2.98 per gallon, 0.50 cents more than the official value that had been established until then.
The Minister of Economy and Finance acknowledged that the decision has led to “a reduction in the consumption of super gasoline”, but stressed that “it has not been fully transferred to the increase of extra gasoline and eco-country”, the other two variants of fuel of mass consumption.
He cited data provided by the public company Petroecuador and later provided by his State portfolio, according to which, if you compare the period from 1 to 27 August last (before the entry into force of the decree) and the same period of September, the consumption of super was reduced by 245,574 gallons.
Likewise, there was a slight increase in the consumption of extra gasoline and eco-country in 59,308 and 41,471 gallons, respectively. He clarified that in terms of fuel consumption, these data reflect a reduction in the use of gasoline between August and September of 4.03%.
Martinez described the data as “positive” because, as he pointed out, “we have to subsidize less super gas and invest less in improving the octane rating, and provide greater environmental benefits.” (I)
