Jet and other fuels prices increase after VAT hike

Twelve types of fuel will not register price increases, despite the VAT hike from 12% to 14%. This includes extra, super and diesel gas, and liquefied petroleum gas, mainly for the automotive, domestic, fisheries and agricultural sectors.

This will involve an increase in the price of other fuels, especially for the industry and for aviation, regardless of whether they were subsidized or not. But, additionally, the fact that the State assumes the VAT hike in these 12 fuel will involve an increase in the subsidy allocated to such items.

Last year, the Ecuadorean automotive sector consumed about 2,000 million gallons of extra and super gas and diesel fuel. If this volume is multiplied by the values assumed by the State for the VAT hike (see chart), the amount of fuel subsidies would be raised by about $ 42 million.

Source: http://www.elcomercio.com/actualidad/combustibles-avion-industria-iva.html