The elimination of the diesel subsidy concerns the agricultural sector
Since last October 15, Decree 799 has caused concern in the agricultural sector for its impact on production costs and the possibility of an increase in prices. This regulation eliminated the subsidy for diesel, jet fuel, gas and liquefied petroleum gas for commercial and industrial use. The decree states that the only subsidized sectors would be the shrimp farming and fishing.
Andrés Racines, marketing manager of Petroecuador, clarified that the subsidy is also for fuel consumption classified as “domestic amounts,”, ie, those who are registered in the system of fuel distribution by minor quantities than two thousand gallons of fuel per month. For those who make larger purchases than that value there is no discount, he says.
In the chart “Sales Price at Terminal Level for the Distributors,” published by Petroecuador, the value of diesel for industry (farmers are included) is $ 1.87 per gallon, while diesel for shrimp farmers and fisheries costs $ 0.90 per gallon.
Source: http://www.eluniverso.com/noticias/2015/11/10/nota/5232620/eliminacion-subsidio-diesel-preocupa-agro