The National Chamber of Distributors of Petroleum Products of Ecuador informed the Ministry of Energy and the Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources that quotas are being set for fuel needs set by gas stations, and with this in mind, the union warned that it is not responsible for the existence of shortages to serve citizens.

On July 21, 2023, this gas station union sent a statement to these state bodies requesting that controls on the correct fuel consumption be carried out for different segments of consumers, and not only for distributors serving the automotive sector, because “serious distortions in fuel consumption are visible in the electricity sector, which coincide with a drop in consumption in the industrial sector”.

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The sector cited data from Petroecuador showing a 17.4% increase in diesel imports between January and May compared to the same period in 2022. “Of diesel imports, the increase in diesel use is in diesel 2, as it represents a 27.9% increase versus a 4.3% increase in premium diesel.”

By diesel consumption segment 2, there is a striking increase in the use of the electric power sector by 537%. “According to institutional figures, 99 percent of this sector is followed by state traders”. Between January and May 2022, the electricity segment reported 128,050 barrels, and between January and May 2023, it has 815,692 barrels.

With premium diesel, there is a 13% increase in deliveries to the automotive sector, but the union maintains that it must be taken into account that part of this increase covers the space left by diesel 2 and that the power sector has a growth of 302%, while industry has a decline of 67%. In this case, the electricity segment went from 45,510 barrels to 182,830 barrels between January and May 2022 and 2023.

For this reason, another warning from the National Chamber of Petroleum Distributors of Ecuador is that something serious is happening in fuel consumption that must be explained, mainly considering the increase in consumption of diesel 2 and premium diesel for the electricity sector and the decrease in consumption in the industrial sector. And at the same time, he emphasized that while the consumption of diesel for the electric power sector is 99% monitored by the state retailer – which has a large increase – consumption in the industrial sector occurs with prices without subsidies and is the one that has been reduced.

He also referred to the increase in the import of gasoline of 95 lei, the market of which is limited in the country.

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The Chamber indicated that they are part of the public service and are therefore obliged to deliver fuel to vehicles, whether private, transport or cargo, that need it. “We distribute fuels that have 97.3% subsidized prices and we are open to controls, because when there are differences in prices, there is market disruption such as fuel smuggling across borders.”

Union President Ivo Rosero asked the Minister of Energy Fernando Santos and the Regulatory Agency to agree a date for a meeting with them, to suspend the setting of fuel quotas for gas stations and to report the use of RON 95 gasoline. (I)