Illegal sale of subsidized fuel generates unfair competition and losses to the shrimp sector – La Nación 2023

by time news

2023-06-08 12:02:09

According to the Chamber of Aquaculture, the elimination of the subsidy for shrimp farmers with more than 30 productive hectares occurred without a clear plan or controls against informality. Illegal sales skyrocket and savings for the State are diluted.

Given the alarming lack of control in the commercialization of subsidized fuels in the country, the National Chamber of Aquaculture (CNA) denounced the problem to the Minister of Energy and Mines, Fernando Santos; and the Minister of Production, Foreign Trade, Investment and Fisheries, Julio José Prado.

The CNA asked the authorities to carry out an exhaustive analysis of Petroecuador’s figures, with the aim of sanctioning the illegal supply of subsidized fuels; which not only negatively affects the shrimp industry, but also causes considerable economic losses to the State.

“The negative impact of this lack of control is undeniable. During our conversations with the President of the Republic, we have pointed out the unfavorable effects derived from the elimination of the shrimp diesel subsidy without an adequate schedule, which has generated a considerable economic impact. In addition, the migration of consumption towards other subsidized fuels, by illegal actors, has completely annulled the intention of the Ministry of Economy and Finance to generate state savings with said elimination,” said José Antonio Camposano, Executive President of the CNA.

The CNA reiterates that the elimination of the differential price of diesel for shrimp farmers, which have more than 30 productive hectares, represents an increase of more than 16 cents in the cost of production per pound and directly impacts their competitiveness.

“We are addressing the Ministry of Energy and Mines with a clear and urgent demand: immediately implement the necessary controls to stop the illegal supply of subsidized fuels, as evidenced by the figures recorded by Petroecuador. Without these effective controls, the formal actors of the shrimp chain are being punished once again, while the informal sector illegally benefits from subsidies”, highlighted the union leader.

The National Chamber of Aquaculture urges the competent authorities to take energetic and forceful actions to resolve this unacceptable situation. The lack of control in the commercialization of subsidized fuels not only undermines the competitiveness of the sector, but also seriously harms the interests of the State and promotes unfair competition.

The Minister of Economy, Pablo Arosemena, has said on multiple occasions that the elimination of the diesel subsidy for large shrimp farms generates savings between $100 million and more than $200 million annually.

But, according to businessmen in the sector, this positive impact fades given the increase in the illegal trade in fuel. (JS)

newspaper the hour

#Illegal #sale #subsidized #fuel #generates #unfair #competition #losses #shrimp #sector #Nación

You may also like

Leave a Comment