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Industry studies impact of withdrawal of fuel subsidies
Posted On 19 Oct 2015
Imagen: El Universo
The elimination of subsidies to the industrial sector could affect production costs and thus raise the final price of products.
The measure announced last Friday raises the elimination of the subsidy for diesel 1, diesel 2, LPG, bunker, fuel oil and jet fuel, fuels that are used according to a study of the Coordinating Ministry of Production, for industry, shipping and electricity generation.
Xavier Diaz, president of the Textile Industry Association (AIT for its Spanish acronym), explained that his industry traditionally uses diesel and bunker to generate the energy needed for the cauldrons. Any increase in this process also generates impact on the final cost of the product
The Coordinator Ministry of the Production indicated in a previous report what was done to evaluate the elimination of subsidies to industrial sectors that would affect the sugar processing, manufacture of non-metallic mineral products, manufacture of wood and of beverage processing.
According to the Ministry, diesel is the highest consumption oil derivative at national level and streamlines the development of various productive activities.
In any event, last Saturday President Correa confirmed that the subsidy granted to industries affect only 1% of average costs.
