A methodological guide to start the work of the specialized technical commission that addresses the targeting of fuel subsidies was delivered on the night of this August 7 by the Ministry of Transportation and Public Works, to the Ecuadorian Episcopal Conference.
This methodological guide seeks to facilitate dialogue and support the work of the technical commission. In it, several criteria have been defined to be discussed:
- Eligibility to be excluded and requirements or conditions to be included as a beneficiary of the subsidy
- Define the mechanisms to implement the targeting system
- Define the names of the members by the Government and suggest the list of specialists who will be invited.
Based on previous dialogues and expert opinionsthe first point that has to do with defining the beneficiaries is very important. It has been said that these criteria could be defined by sector (transport, agriculture), also by those who do not need it due to their economic condition. The idea of targeting, as understood by the Government, is to determine who does need the subsidy, that is, the most vulnerable people and apply the aid to them. And that the rest of the citizenry must pay a market price. However, the indigenous sector has indicated that the subsidy should be general, but target or choose those who do not need it in order to take it away from a specific sector.
On the mechanisms, there are several ideas from have a quota card, or with one with monetary compensation. Another idea is to establish an intelligent system that determines the consumption per car, per license plate.
In this new stage of the dialogue on targeting, the tables will be made up of people specialized in the issues.
Until now, the Minister of Transport and Public Works, Darío Herrera; the Minister of Production, Julio José Prado; the Vice Minister of Hydrocarbons of the Ministry of Energy and Mines, Hugo Aguiar; and delegates from Petroecuador, on behalf of the Government. On the other hand, representatives of the three indigenous organizations have represented the indigenous sector: the Confederation of Indigenous Nationalities of Ecuador (Conaie), the National Confederation of Peasant, Indigenous and Black Organizations (Fenocin) and the Council of Indigenous Peoples and Organizations. Evangelicals of Ecuador (Feine), being the visible heads Leonidas Iza and Henry Llanes.
In an official statement, the Government indicated that it considers that the dialogues are a legitimate and democratic mechanism to meet the needs of the 18 million Ecuadorians. The thematic tables will continue this week, in order to articulate consensus and benefits in favor of Ecuadorians.
In Ecuador, fuel subsidies would come to cost this year $3,345 million, because gasoline is subsidized in the country extra, ecopaís and diesel, as well as domestic gas. The high prices of crude oil and fuels at the international level meant that -through a band mechanism that was in force in Ecuador- they also rose. This generated a social protest that ended after 18 days of strike with a peace act in which the Government and the indigenous people agreed to discuss a targeting system. The Government has promised to keep extra gasoline and diesel frozen. (YO)
Source: Eluniverso
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