The consumer prefers price to quality, and therefore the consumption of this released fuel has been reduced between 2018 and December 2021, says an expert.
Super gasoline, whose price is released in Ecuador and supposedly varies according to the behavior of the international price of crude oil, rose for the period from January 12 to February 11, 2022 and stood with a suggested price of $3.52 a gallon. This is an increase if one takes into account that in the period from December 12 to January 11 this fuel was at a suggested price of $3.40 a gallon.
Super gasoline has experienced several increases and some price drops since 2020, according to data from Petroecuador. For example, between the periods from January 12 to February 11, 2021 and from November 12, 2021 to December 11, 2021, it was on the rise all the time. Thus, it went from $2.37 to $3.52 a gallon, respectively. However, in December it fell to $3.40, to rise again this January.
In accordance with Oswaldo Erazo, executive secretary of the National Chamber of Petroleum Derivatives Distributors, since December 2018 the increases began to be applied in this higher priced but better quality fuel. He explained that the consumer has preferred price to quality and therefore, the sale of supermarkets has been reduced by almost half in three years. He said that in 2018 the fuel market was distributed in eco gasoline 44.4%; the extra 40.8% and the super reached 13.9%. However, at the end of 2021 the market has changed. The consumption of eco gasoline rose to 47.5%, the extra to 43.8% and the super fell to 8.6%. In any case, it is important to note that total consumption has been reduced between 2018 and 2021 due to the effects of the pandemic, going from 1,278 million to 1,186 million gallons.
Erazo also commented that the price of super gasoline has had fluctuations, apparently, attached to the variation in the international price of crude oil and other parameters. However, he explained that it is illogical that this month the price has risen when in Petroecuador’s subsidy reports it is seen that the subsidy for extra gasoline and ecopaís have fallen in relation to December. Indeed, in the table of subsidies published by Petroecuador for the December-January period, it is indicated that the subsidy was $0.13 for the extra and $0.24 for the ecopaís. However, this month it lowered that subsidy to $0.09 and $0.17, respectively.
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