The president of Ecuador, Guillermo Lasso, announced on Friday (22) the freezing of fuel prices and that he will apply “without exception” the official prices of the basic food basket in the country, after an impasse with social movements on their tax reforms and labor.
“Monthly fuel price increases are suspended, and the price of extra gasoline is set at $2.55 and the price of diesel for public, community, school, tourism, heavy load, mixed and general transport is set. at $1.90”, announced the president.
Social movements had called a demonstration for next Tuesday (26) to demand these measures, after months during which fuel prices rose by more than 40% due to a system of price bands established by the former president Lenín Moreno, which had mitigated the loss of state revenues from the country’s historic subsidies.
Lasso argued that his decision is based on the need to “bring stability to the pockets of Ecuadorians”. “We listen to you, citizens, and also the social and political sectors to generate agreements that lead us to a stable environment in which we can grow and generate jobs,” said the president in a public statement on Friday.
Fuel prices are one of the most sensitive issues in Ecuadorian society and a 2019 attempt by Moreno to eliminate subsidies led to a wave of protests in which at least six people died and more than 1,500 were injured.
Moreno stepped back to calm the country, but months later, with oil prices low due to Covid-19, he created a floating system that had a similar effect. The price in Ecuador was subject to the international market and the increase in oil prices in 2021 drove up the cost of all fuel.
Regarding the demands made by the indigenous movement to control the increase in the price of basic products, Lasso assured that he ordered “the authorities of the national government to protect the family economy.”
“I gave instructions to the governors and mayors to apply, without exceptions of any kind, the official prices for rice, milk, fruit and all products in the basic food basket,” he added.
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