Ecuador: Lasso increases fuel prices, before freezing them

Ecuadorian President Guillermo Lasso on Friday ordered an increase of up to 12% in fuel prices in Ecuador, however announcing in the wake of the end of their automatic monthly increase, the subject at the heart of a social movement for several weeks in the country. .

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"As of this day, the price of gasoline is fixed at 2.55 dollars per gallon (American) and likewise the price of diesel (...) is fixed at 1.90 dollars",

declared Guillermo Lasso. in an official speech.

Gasoline has so far traded at $ 2.50 a gallon, and diesel at $ 1.69.

These new fuel prices will however be frozen, President Lasso having announced at the same time the end of the automatic monthly increase in these same prices, in force since 2020. According to this system, Ecuador adjusted the price each month. fuels based on the price of oil on the international market, which has caused a 70% increase in the US gallon of diesel (from $ 1 to $ 1.70), the most widely consumed fuel locally.

Social claim

Ecuador is going through an

, but needs

, explained the head of state. Elected in spring 2021, Guillermo Lasso, a former banker, had so far declared that he wanted to keep the system of automatic fuel price increases. Freezing fuel prices is one of the main demands of a social protest movement, led by indigenous organizations and trade unions, which have seriously increased political pressure in recent days in Ecuador. A call to demonstrate on Tuesday in the streets of Quito was launched on Thursday. The president called

the leaders of the demonstrations

and

, calling on his supporters to

the capital.

On its Twitter account, the political arm of the Confederation of Indigenous Nationalities of Ecuador (Conaie), welcomed these latest announcements as

.

Spearhead of the protest, the Conaie meets this Friday in the Andean community of Colta, in the center of the country, to decide on its future actions vis-à-vis the government.