Gasoline Extra without State Subsidy in January 2025

As of January 2025, the state stopped subsidizing Gasoline Extra, whose price now reflects international costs. Diesel is still subsidized in Ecuador.

Causes

• Price Band System: Introduced in June 2024, this system allows fuel prices to fluctuate within set limits based on changes in international oil prices.

  • Prices can increase by up to 5% or decrease by up to 10%.

  • This flexibility aligns local fuel costs with global market trends, gradually reducing the need for subsidies.

• Decline in Oil Prices: The global price of oil dropped from $84.44 per barrel in July 2024 to $74.59 per barrel in January 2025.

  Lower oil prices reduced the gap between the cost of importing gasoline and its retail price in Ecuador.

Savings

In 2024, fuel subsidies cost $208 million, saving $231 million compared to 2023.

Source: El Mercurio.