This morning, Dozens of members of the National Chamber of Petroleum Derivatives Distributors of Ecuador (Camddepe) attended the Plaza de la Independencia in Quito in a peaceful sit-in to hear at least three specific demands to the Government.
These are: what five cents is restored in the marketing margin; that he State is responsible for the cost of transporting the fuel to the gas stations that are located in remote sectors like the rural ones and there is no double withholding of value added tax (VAT).
Last April, the distributors held a similar sit-in and on that occasion they were received by the Minister of the Government, Francisco Jiménez. However, so far there have been no concrete results. Additionally, they also said that they had met with the Minister of Energy, Xavier Vera, who offered to provide a solution and had asked for three months, which will be fulfilled in a few days.
In a statement a few days ago, the Chamber had explained that the fuel distribution sector, which has been investing in private infrastructure and distributes fuel nationwide, has a margin frozen in cents for 19 years.
“As a consequence of this absurdity, 48.8% of the service stations are working at the breakeven point or less, with a high risk of going bankrupt, mainly the stations located in rural areas or far from the distribution terminals,” the union said.
Additionally, they rejected that the distributors’ criteria have not been considered in the targeting tables for fuel subsidies. They explained that they have important information from the point of view of physical infrastructure, technology, financial situation and cash flow for recovery of values in case of sales to beneficiaries of the subsidy.
“We believe that the idea of targeting software with incomprehensible values has a high probability of failing, since the technological profile of the stations has not been analyzed, which is very different depending on the geographical area.”
They also explained that the government announced the launch of new gasoline, without considering the necessary infrastructure of service stations for this effect.
On the subject of VAT, they indicate that stations currently pay the tax in advance, which is known as presumptive VAT, and on the other hand, public institutions retain 100% of the value of fuel purchases, which causes a double retention. (YO)