Fuel prices for Ecuadorian consumers will not be affected by the lack of pumping from the Shushufindi Quito pipeline and polyduct. After learning of the pumping stoppage due to the collapse of the Marker River bridge that exposed pipelines in the El Reventador sector and the decision by Petroecuador and OCP to halt activity, the concern of fuel consumers was whether this could generate price increases or product shortages.

Regarding the first question, Oswaldo Erazo, executive secretary of the Chamber of Petroleum Products Distributors (Camddepe), explained that it is likely that if the pumping lasts for more than twelve days, more derivatives will have to be imported than is normally bought, i.e. gasoline and premium diesel. However, he reminded that Ecuador already imports 70 percent of derivatives because it is in deficit.

If there is an increase in imports, it will not affect prices for consumers, since by law the prices of regular gasoline (extra and ecopaís), as well as premium diesel, are frozen. What could be affected is the already large amount of subsidies that the state has to cover. In 2022, the amounts allocated for fuel subsidies amounted to $4.6 billion.

Meanwhile, regarding the gasoline super and ecopús 89, which are currently on the market, Erazo said that there will not be much difference in them, since they are already imported and sold at the market price. Therefore, there will be no impact on the consumer either.

However, in the event of an increase in the price of fuel due to higher imports, the state’s pocket will suffer, as it will have to pay a higher subsidy for derivatives with a fixed price.

At the same time, the trade union commissioner is sure that there will be no shortage of fuel. This is according to the statements of the main energy authorities who said that the existing oil will be used for domestic consumption, which is given priority. Erazo currently has crude oil to feed the Esmeraldas refinery for ten or twelve days. The director of EP Petroecuador confirmed that pumping could resume in seven days, so there will be no problem.

In the event that the solution lasts for several days, then an increase in imports could be applied and clean products could be transferred through the polyduct system that supplies the entire country. According to Erazo, Shushufindi Quito covers only 20% of consumption.

As for exports that are already being stopped, in order to guarantee domestic consumption, Erazo said that about 23 million barrels of exports are stopped every day. If that value were multiplied by the seven days the problem is estimated to last, about $163 million would not have been received. However, Energy Minister Fernando Santos Alvite said the lack of pumping and the resulting lack of deliveries for external contracts is not a loss, as deliveries have been delayed. In any case, Erazo believes that capping the wells could create higher costs. “Production doesn’t recover as easily when wells are off, it’s not off and on.”

There is a meeting date with gas stations

The date of the meeting of the union of fuel distributors with the ministers of energy and economy is scheduled for March 1, reported Oswaldo Erazo, executive secretary of the Chamber of Distributors of Petroleum Products. A few days ago they staged a protest demanding, among other things, the delivery of 5 cents more for the marketing margin per gallon of fuel; that there is no double VAT collection and that the state takes over fuel transportation. Erazo said that the invitation to hold the meeting on the Government’s platform has already arrived.