Ecuadorian President Rafael Correa announced yesterday that in 2016 he will eliminate the subsidy on domestic gas once the eight new hydroelectric plants that currently are being built are operational, but he stated that the subsidies maintained by the State are not bad.
He said that in order to reach that goal, in 2015 they will start selling highly efficient electric kitchens, which will be subsidized, to replace the gas.
He reiterated that the 2016 will be the deadline, and that the domestic industry is preparing for the construction of those kitchens and the state to give the first 60 kilowatts for free. “And after that, when all Ecuadorians have electric kitchens, gas prices should have an international price because the current price ($ 1.60 for the cylinder of 15 kilos) does not cover the cost of distribution” explained.
“So is smart to remove subsidies, such as gas, replacing gas of domestic use for electricity when the eight new hydroelectric plants are ready” insisted the president, during his Saturday broadcast in La Maná, Cotopaxi.
Correa also announced that his government is considering a quota system for Ecuadorians who have a vehicle to obtain a share of gasoline annually with subsidized price. If The quota is exceeded the person must pay the real price of fuel.