Ecuador: Guillermo Lasso freezes fuel prices to avoid social conflict

The Ecuadorian president, Guillermo Lasso, announced on October 22 the freezing of the monthly increase in the price of fuels. “As of today, the price of extra gasoline is set at USD $ 2.55 per gallon and the price of diesel in public, community, school, tourism and general public transport is set at USD $ 1.90,” he said.

The decision of the head of state comes after various social organizations, including the Unitary Front of Workers (FUT) and the Confederation of Indigenous Nationalities of Ecuador (Conaie), the largest unions in this country, will announce for October 26 a national march demanding this economic measure.

On the other hand, the president also referred to the price of the products of the basic basket and announced that he has ordered all the authorities of the National Government to protect the family, rural and peasant economy. “I have ordered the authorities of the National Government to protect the family economy. I have instructed governors and mayors to enforce, without exceptions of any kind, the official prices of rice, milk, fruits, and all the products in the basic basket ”, he wrote on Twitter.

Price hike

In recent months, the price of fuel in Ecuador has increased by more than 40%, this increase has been mainly driven by rising costs in transportation, education, food and housing, and the rise in international oil prices .

On the other hand, in the month of September, inflation reached 1.07%, compared to the same period of the previous year, where it was -0.90%, according to the National Institute of Statistics and Censuses.

The same body also reveals that in September 2021 the cost of the Basic Family Basket (CFB) reached 712.85 dollars, while the monthly family income of an average household was USD 746.67. The figure represents 104.74% of the cost of the CFB.