2024-09-15 00:46:41
The recent increase in the price of gasoline in Ecuador has raised concerns among citizens due to the direct impact on their daily economy.
As of June 28, 2024, the cost of a gallon of extra and ecopaís gasoline rose $0.257, reaching $2.722 per gallon.
This change affects a large part of the population, since according to the latest Population and Housing Census, 1,265,154 households have at least one vehicle for exclusive use by the home, which represents 24.4% of all households.
Impact on tanking costs
A person who filled the tank with $20, which was equivalent to about 8.112 gallons of gasoline, will now have to pay $22.08, because if they decide to continue spending $20, they will only be able to buy 7.35 gallons, almost a gallon less than before.
Overall, the average vehicle that requires 10 gallons of extra gas or eco-friendly fuel will see an increase from $24.65 to $27.22, implying an additional expense of $2.57. While a pickup truck, which usually requires 20 gallons, will now have to pay $5.14 more.
Beneficiaries and excluded
In Ecuador, 27.9% of households with more than three people own vehicles, while 15.9% of households with only one person own at least one vehicle. Less than 3 in 10 Ecuadorian households own their own means of transportation.
While 612,112 households in Ecuador own a motorcycle, there are a total of 1,778,811 motorcycles in the country that use gasoline.
In addition to families, companies also own vehicles. According to the Ecuadorian Chamber of the Automotive Industry (Cinae), there are 2,236,619 vehicles and 1,778,811 motorcycles that use gasoline in circulation in Ecuador. Between January and May 2024, 11,419,880 barrels of extra and ecopaís were consumed throughout Ecuador, while super gasoline consumption only accounted for 479,749 barrels.
Of all the vehicles that consume extra and eco-country fuel, only a maximum of 84,000 units, including taxis, tricycles and mixed vans, will receive compensation. In the first month of the new scheme, 24,000 transporters from these three groups will be beneficiaries. The registry will be open for three more months so that others can join.
For the rest who do not have compensation, filling the tank will cost, on average, between $2 and $5 more with the new gasoline price.
The new price of extra and ecopaís gasoline will be in effect until July 11, 2024. Afterwards, prices will be adjusted monthly, and may rise by up to 5% or fall by up to 10% depending on the international price of oil. The Ministry of Economy’s projections estimate that the price of a gallon could reach around $3 in the last months of 2024, although it is not expected to exceed that value in the next twelve months.
By: Ecuador Live