He they plan to transform additional gasoline and ecopais from 85 to 87 octane, without increasing the price for the consumeralready has a review for 75% or 80%, although there are several doubts about this initiative, both because of the time for its implementation, which was expected in August -90 days from May 25-, and because of the costs for the state that could further affect subsidies, according to experts.

The goal of this initiative is to transform extra gasoline from 85 octane to 87 octane. He Petroecuador International Trade Manager and one of the project managers, Reinaldo Armijos, He explained that the plan already has the approval of the Ministry of Energy and that it will not represent a higher cost for the company.

In this sense, he said, progress has already been achieved in legal and operational issues and s Energy Regulation and Control Agency (ARC) and the Ecuadorian Institute for Standardization (INEN) make a transition. After that process is finished, he announced, they will start announcing tenders for the import of new 85 octane gasoline.

According to Armijos, the company currently has the ability to raise the octane number of fuel in two ways: 95 octane gasoline, which is the super grade, and ethanol. In order to increase the octane number extra to 87 octane, the imported gasoline RON 80 will be replaced and only RON 85 will be introduced. Additionally, RON 95 will be used in the blend.

In addition, he explained that five windows are currently being purchased for 95 octane gasoline, but the plan is to lower one window or boat per month from 95 RON and replace it with an 85 octane window. “We will reduce 95 to 85, because very high quality is not required,” Armijos said. Additionally, he commented that the quality of gasoline leaving the refinery is higher than 85 octane.

The initiative is viewed positively by several experts on environmental issues, although there are doubts about whether it can be implemented, especially in a government that is only a few months away from completion.

Darío Dávalos, an expert on energy issues, believes that having better octane gasoline is a good option, but doubts that it will materialize. First, because they have not yet held tenders for the import of the necessary gasoline. He also sees a lack of coordination between oil authorities. For example, in the plan presented by the ministry on the improvement of gasoline, in which the technical standard INEN NTE 935 established that there will be four types of gasoline, according to the octane number: 85, 89, 92 and 95. 87 octane is not covered. “That means they have to change that rule first,” Dávalos said.

Minister of Energy, Fernando Santos, announced the plan on May 25, and at that time indicated that it would be applied in 90 days (August 25). However, when asked by this newspaper how the matter is progressing, he said that he would specify it in September.

Doubts about the deadlines also arise because the last tender for 80 lei gasoline was held on May 23, and exactly 2,085,000 barrels were purchased with the first delivery expected from June 7 to 9. There are seven deliveries.

In accordance with Oswaldo Erazo, executive secretary of the Chamber of Petroleum Products Distributors, When it is requested to raise the octane number, it is necessary to import gasoline with a higher octane number, with a higher price, and a frozen selling price would certainly increase the subsidy.

On the other side, reminded that Ecuador currently imports 66% of gasoline we consume. When it was decided to increase the octane number of super gasoline from 92 to 95 octane, the measure was an improvement of 2.5% of the gasoline market in the automotive sector. But now, if the announced measure is also applied to regular gasoline, it will be improvement in 52% of the market, which would make the gasoline improvement more apparent. For Erazo, this benefits the environment, but not the tax pocket.

He also reminded that in November 2020, Executive Decree 1183 In the midst of the pandemic, the Lenín Moreno government reduced the octane number of extra fuel from 87 to 85 and there was no opposition, precisely because it was at that complex moment. He explained that, on the other hand, in recent months he has been concerned about why so much 95 octane gasoline is being imported if consumption is the most limited. In this sense, he said that quality gasoline must definitely be used for mixtures.

Other players in this market, who wished to remain anonymous, assured that fuel costs approx another dollar per barrel for each additional octane number. If gasoline 85 instead of 80 octane will be imported, the price of the subsidy will increase, Therefore, it could even provoke the observations of the Comptroller’s Office and, above all, increase the already high level of subsidies in the country.

In the meantime, Minister Fernando Santos claimed that the new multi-octane gasoline “will not cost more”. He explained that RON 80 gasoline, which was imported to improve gasoline for our refineries, is almost no longer produced in the world due to environmental reasons. It was replaced with RON 85 petrol “which costs the same”. Besides, the introduction of this better petrol will use less RON 95 petrol, which was also imported to improve quality, he said. “This circumstance in the international market allows us to raise the 2 octane level without additional costs,” he commented.