Some gas stations in Manabí this Monday, July 24, began to present problems with a shortage of diesel, says the president of the Chamber of Distributors of Petroleum Products (Camddepe), Ivo Rosero. This would be one of the first consequences of the decision by the Agency for Regulation and Control of Energy to establish quotas for certain gas stations in Manabí and Napo. The situation has caused great concern in gas stations, which are also preparing to hold a protest this Wednesday in the Government Palace, because of this problem, but also because of the unresolved claims of distributors that the market margin has not been reviewed for 20 years.

According to Roser, the Energy Regulatory and Control Agency (ARC) arbitrarily decided that certain gas stations sell less fuel. The measure, he clarifies, was adopted anti-technically, without prior warning and without any official communication, since, he assures, it is faithfully applied only at certain gas stations.

Previously, twenty gas stations received a statement that they refrain from selling gasoline to unauthorized sectors.

According to what Rosero reports, in Manabí several gas stations protested in front of the ARC, but there were also gas stations that, faced with a verbal warning that they only had a quota, put up signs that sell with restrictions, by order of the Government. This was not allowed by the Agency officials who forced them to remove the sign. Other gas stations have already posted “No Diesel Fuel” signs. For Roser, an additional problem is that by imposing quotas only on certain gas stations, the nearest gas station that has a quota ends up profiting, which affects free competition.

At various gas stations there is a sign that there is a limit on the sale of diesel. Kindness Photo: Camdepe

Energy Minister Fernando Santos stated in the media in the previous days that ARC is taking measures to prevent fuel diversion and that gas stations are being checked. The official said that it is abnormal that with an economic growth of 1 percent or 1.5 percent, there is an increase in diesel consumption of 12 percent.

Last Friday, the Chamber of Distributors sent a letter to Minister Santos Alvite warning that such problems could occur and saying that they are not responsible for possible shortages. But they also decried that while there is a disproportionate rise in diesel, it is not in the automotive sector but in the electricity sector which uses subsidized diesel. Meanwhile, they point out that diesel consumption for industry has mysteriously dropped. The distributor’s hypothesis is that if there is a diversion to unauthorized sectors, it must be through the power companies.

Indeed, according to the same Petroecuador reports, from January to May 2023, consumption of diesel 2 by electric companies increased by 537%, while premium diesel increased by 302%. On the other hand, industrial consumption fell by 67%. In terms of volumes, diesel consumption increased by about 800,000 barrels in the power industry and fell by about 800,000 in industry.

Rosero assures that these measures taken against certain distributors can be interpreted as retaliation for the protest announcements they made for this week and for the reports filed against certain officials of the ARC itself.

In any case, when asked if there is a possibility that fuel from gas stations is diverted to smuggling or some unauthorized sector, he considers that consumption is normal and that from 2019 to 2023 an increase of 6 percent was recorded. Very far from the increase recorded in electricity consumption. However, he also points out that his union is the first interested in keeping the operation of gas stations under control. For this reason, they also condemned the appearance of several gas stations in El Oro and Zamora Chinchipe. In this regard, let us recall that as a union they identified the reasons for the significant increase in the number of gas stations.