Ecuador to cut fuel prices after weeks of protests
3 Min Read
The Ecuadorian President announces that the country would cut fuel prices after weeks of demonstrations, and the Energy Ministry warns that the country could halt oil production in 48 hours if protests continue.
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Ecuador to cut fuel prices after weeks of protests
Ecuadoran President Guillermo Lasso stated on Sunday that the government will reduce fuel prices, which have provoked weeks of protests, although not by as much as demonstrators had asked.
In a broadcast, Lasso stated that he "decided to reduce the price of gasoline by 10 cents per gallon and diesel also by 10 cents per gallon."
The strong Confederation of Indigenous Nationalities of Ecuador (Conaie), which has been blocking roads and seizing oil wells around the nation since June 13, had asked that prices be reduced by 30 cents and 35 cents, respectively.
Earlier on Sunday, the country's Energy Ministry warned that oil production had reached a "critical" point and that it might be completely suspended within 48 hours if the demonstrations and blockages persisted.
Protests against growing living costs have paralyzed transportation in Ecuador, with barricades erected in 19 of the country's 24 regions.
Read more: Ecuador protests: 3 dead, 92 wounded, 94
In a statement, the Ministry stated that "oil production is at a critical level."
"If this situation continues, the country's oil production will be suspended in less than 48 hours as vandalism, the seizure of oil wells and road closures have prevented the transport of equipment and diesel needed to keep operations going."
Ecuador's economy is heavily reliant on oil earnings, with exports accounting for 65% of total output in the first four months of 2022.
Earlier yesterday, Production Minister Julio Jose Prado stated that the demonstrations had resulted in $500 million in public-private economic losses.
According to Prado on Sunday, "Each additional day of downtime represents $40 to $50 million lost."
In a related context, Ecuador's National Assembly launched a no-confidence vote against President Guillermo Lasso on Saturday, nearly two weeks after he declared a state of emergency in response to sometimes violent countrywide protests where security forces used excessive violence against protesters, resulting in the death of a number of Indigenous members.
However, Ecuador's parliament had to postpone the vote of no confidence in President Guillermo Lasso until Sunday as lawmakers could not fit the impeachment debate into the eight-hour session on June 25, speaker Virgilio Saquicela said.
"Given the necessity of giving the floor to all legislator, the meeting is suspended and will be continued tomorrow [June 26] at 4:00 p.m. [21:00 GMT]," Saquicela said concluding the Saturday session, which was broadcast on social media.
On his part, Ecuadorian President Guillermo Lasso revoked the state of emergency declared in six districts earlier this month in response to indigenous protests against the government.
The removal of the state of emergency, which was declared on June 20, is one of the indigenous groups' conditions for conducting talks with Ecuador's government.
