Ecuador to scrap monthly fuel price increases, establishes fixed price -Lasso

Ecuador will scrap monthly price increases on fuels and will instead fix prices for gasoline extra and diesel, President Guillermo Lasso said on Friday. Lasso's decision follows pressure by indigenous and other organizations, who had called a national protest for next week in rejection of fuel price rises and the government's economic and social policies. "I have decided that from today monthly fuel price increases are suspended," Lasso said in a video broadcast.

Ecuador will scrap monthly price increases on fuels and will instead fix prices for gasoline extra and diesel, President Guillermo Lasso said on Friday. Lasso's decision follows pressure by indigenous and other organizations, who had called a national protest for next week in rejection of fuel price rises and the government's economic and social policies.

"I have decided that from today monthly fuel price increases are suspended," Lasso said in a video broadcast. As of now, the price of gasoline extra is set at $2.55 a gallon, Lasso said, while the price of diesel will be fixed at $1.90 a gallon.

Previously prices of gasoline extra - which sees the greatest consumption in Ecuador - and diesel were set monthly by a fluctuating system based on the price of oil and related products. The model was adopted in May 2020 by ex-President Lenin Moreno, months after protests forced the government to backtrack on plans to scrap fuel subsidiaries as part of austerity plans.

The new fixed prices are slightly higher than those that were due to be set for this month. "We have listened to you, the people, and also to political and social sectors to reach agreements which bring us to a stable environment, in which the economy can grow and build jobs," he said.

Lasso will also enforce fixed prices of basic supplies, he said, in a move to help Ecuadorians facing the economic effects of the coronavirus pandemic.

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