Ecuador to cut fuel prices that sparked protests

QUITO

Ecuadoran President Guillermo Lasso announced on June 26 that the country will cut fuel prices, which had sparked weeks of demonstrations, though not by as much as protesters have demanded.

“I have decided to reduce the price of gasoline by 10 cents per gallon and diesel also by 10 cents per gallon,” he said in a broadcasted address.

The powerful Confederation of Indigenous Nationalities of Ecuador (Conaie), which since June 13 has been blocking roads and occupying oil wells in different parts of the country, had demanded a reduction in prices by an additional 30 cents and 35 cents, respectively.

Earlier on June 26, the country’s energy ministry warned that oil production had reached a “critical” level and could be halted entirely within 48 hours if the protests and roadblocks continued.

The protests, which are also against rising living costs, have crippled transportation in Ecuador, with roadblocks set up in 19 of the oil-rich country’s 24 provinces.

“Oil production is at a critical level,” the ministry said in a statement.

“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.”

“Today, the figures show a decrease of more than 50 percent” in production, which was at roughly 520,000 barrels per day before the protests, it said.

Ecuador’s economy is highly dependent on oil revenues, with 65 percent of output exported in the first four months of 2022.