Luis Felipe Vizcaíno, from Fenatrape: With this measure we give stability to Ecuador

Luis Felipe Vizcaíno, president of the National Federation of Heavy Transport of Ecuador (Fenatrape) and participant in the dialogues between transporters with the Government on the targeting of subsidies, explains that the measure to suspend the monthly increases, announced on Friday by the president Guillermo Lasso, was the result of dialogue with the transport union.

Did the government’s decision to suspend the monthly increases and set a higher price for gasoline and diesel have the endorsement of the transport sector?

Yes. This measure is the result of the dialogue of almost four months that the Government and the transport sector have had. The situation is not perfect, it is complex, however, it is important that the price is frozen for all sectors. We were worried because every time it went up endlessly and we did not know up to what price it was going to go. We also believe that we have made a contribution for the country, for all Ecuadorians. We are about 400,000 carriers, but in the country there are 2.3 million vehicles that benefit

Does the issue of the new increase in diesel affect you, which is somewhat strong (21 cents)?

We consider that the measure should be accompanied by a tariff floor. As carriers we have contributed a large part of the $ 1,500 million that the band system has left for the treasury. That is why it is necessary for other sectors of the economy that are our clients to pitch in and we reach an agreement so that rates can be negotiated. This without affecting the final consumer.

Will your sector receive other types of compensation, was targeting left aside?

It was possible to establish a series of development measures for the transport sector. Among them the setting of a tariff floor, the simplification of procedures in the National Transit Agency (ANT). There has also been talk of a debt refinancing, in adequate terms and rates, in which Conafips and CFN will intervene. Another important issue is the energy transformation towards electromobility. We will seek an orderly replacement of vehicles, with the support of multilateral green funds. In the case of heavy transport, a review of emission points will be made to control informality by the SRI. Among other issues of security and lowering of tariffs.

In any case, the measure will affect the treasury, which will stop receiving certain monies. Do you know how the Government will compensate for this fiscal sacrifice?

First you have to stabilize the economy and build confidence. With this measure we give stability to Ecuador, because otherwise there would possibly have been a social imbalance. This tranquility allows planning the country.

Now that the price is frozen, what will happen if international prices eventually stabilize and start to decline?

If the scenario that you say arises, a review should be presented to the Government. President Lasso has told us that his intention is not to generate on profits, but to cover the fiscal deficit.

Do you know if these measures were also agreed with the IMF, since the Government had certain goal and structural commitments with that body?

I don’t think I have the approval of the IMF. The Fund wanted us to arrive at international prices. I think that in the extra gasoline we have already arrived, but in the diesel there is still a gap, because the diesel in Colombia is at $ 2.50. But I believe that the Government will take its steps to reach agreements.