He fuel targeting processwith all the parameters agreed in the peace act, it seems doomed to fail because it would keep the subsidy 85% of the fleet, which would not represent a real target process, nor would it represent a real saving for the state treasury.

This is one of the conclusions of representatives of fuel distributors who were at the technical table for directing subsidies at the Ministry of Energy a few days ago. “That would be unheard of, because 85 percent is practically the entire country,” says Ivo Rosero, president of the Chamber of Petroleum Products Distributors (Camddepe).

The trade union commissioner explains that rather they have proposed an alternative that they hope the authorities will consider that they said they already are preparation of a draft target plan, which will be before the President of the Republic, Guillermo Lasso, issues the corresponding executive decree.

The agreement with the domestic sector establishes the creation of complex technological systems, by license plate number, by income, by vehicle ownership, by engine volume, to determine who is receiving the subsidy. The ideal would be to make fuel more expensive, that is, to determine who needs a subsidy, Rosero believes.

This agreed model, he adds, cannot work for various reasons.

For Rosero, it would not be worth avoiding all these problems to end up with an inefficient result by keeping 85% of the subsidy.

The solution proposed by the distributor sector is use a debit card, issued by -for example- Banco del Pacífico with a fixed value, offset the value of the current subsidy to those who need it. Explain that this is logistically possible, because exit quickly It works in all corners of the country. “It would be cost-free with immediate implementation,” he says.

It is also said that the funds could be delivered through an electronic wallet with which the various benefiting sectors can get their subsidies.

In that sense, Rosero a call to the indigenous sector to make its position more flexible: “they put on a straitjacket, with agreed parameters, which makes implementation difficult”.

He emphasizes that it is complex to set up automation and display two prices (one with subsidy and one without). “The solution is simple,” he says, since they can buy fuel with a card or funds in an electronic wallet, which in both cases are dollars. They should be given a subsidy corresponding to the difference they will pay compared to the market price. Rosero believes that if a consensus were reached taking this quick and effective measure might even pay off in pacifying the country.

For Rosero, the natives are ill-advised, as the proposed parameters benefit the upper and upper middle classes, not those who really need it. Remember that there are very high class Mercedes Benz C200 vehicles of 1600 cc. and most SUVs that don’t fit the profile of people who really need said subsidy.

On the other hand, at the technical meeting, government and union representatives discussed the issue of the marketing margin (which currently remains frozen for 20 years), that they asked for it to be increased by five cents. This indicates that there has been an opening by the Government. However, they were told that this increase would be possible in combination with the increase in fuel prices that would come with the targeting.

Rosero ratifies the requests sent to the Government militarize stations, especially in “hot” places deter crime from further attacks. Also to implement sanctions for those who do not comply with the ban on riding a motorcycle for two people.