A The third wave of migration of consumers from super gasoline to extra gasoline or ecopaís is being experienced these days in Ecuador. The participation of super gasoline in the Ecuadorian market it has been falling significantly and could fall even more in the coming months. The increase in its price that is released increasingly displaces this less polluting fuel, although at the same time, the need for new and high-end cars to use better fuel keeps it in the fight. In the midst of this situation, marketers and distributors apply their own strategies to attract customers.
In accordance with Oswaldo Erazo, executive director of the Chamber of Petroleum Derivatives Distributors (Camddepe), super gasoline has had three turning points in these years that have led him to lower his participation in the fuel market. This fuel has lost market by going from 13% in 2011 to 4.2% in January 2022. The rest of the market is taken by extra and eco gasoline with 50% and diesel with 45.8%. By February, March or April, participation could already reach 3%, predicts Erazo.
Meanwhile, Pablo Orozco, from Petróleos y Servicios (P&S), agrees that “in Ecuador what rules is the price”, and that after the dramatic rise registeredfirst due to the reactivation after the pandemic and then due to the war in Ukraine, will lead to a new market loss for the released gasoline that could remain up to a minimum of 2%.
On the subject, Erazo recalls that the first reduction suffered by the super was in 2012, when the government at that time improved the octane of extra and super gasoline. The first went up from 82 octane to 87 octane, while the super went up from 89 to 92 octane. The improvement of the extra made many prefer that fuel for the price.
However, the biggest change occurred when in August In 2018 the price was increased and in December of the same year it was released. There, many consumers switched to another, lower-quality fuel.
Now, after the rise in the price of crude oil, which these days has reached $116 per barrel, a new migratory wave of consumers from supermarkets to extra has returned since February and this could intensify in March and April. Some voices have calculated the increase in March above $4 and for April it would reach higher items. This, especially if you take into account that right now international gasoline, for example in California, is $5.35 for regular and $5.55 for super.
Orozco, for his part, thinks that This March 12, there will be significant increases in the price, considering that marketers will surely try to anticipate what continues to happen in the following months, in which the trend would continue to be upward.
Meanwhile, Erazo explains that although the super gasoline that is sold nationwide is all of the same quality, since there is only one supplier, which is Petroecuador, prices move based on a released price. but each marketer or even each distributor sets a price that obeys their own sales strategies. For example there are those who want to win customers and place lower priceseven than those suggested by the authority. Others have higher prices by offering special fuel additives.
Petróleos y Servicios has generated some significant drops, but according to Orozco, this has been rather a private decision of certain distributors with the aim of gaining more customers.
On the other hand, the loss of market, says Erazo, has several repercussions. It is migrating from a non-subsidized fuel to a subsidized one, which affects the coffers of the State. In addition, there are environmental effects, as a fuel that is less friendly to the environment gains ground and also consequences for consumers who, sooner rather than later, will see their engines affected by the poor quality of gasoline. In addition, it should be reflected that in Ecuador “free prices are charged for super gasoline when the quality is not super gasoline.”
In Ecuador at the moment There are two types of gasoline: the extra and eco with 87 degrees and the super with 92. However, there are high-end vehicles whose specifications require that the gasoline be a minimum of 95 octane. In addition, Ecuadorian gasoline, which is a mixture of fuel produced in refineries and imported fuel, has up to 400 parts per million of sulfur, when the recommended standard is 30 parts, says Erazo. This it constitutes a limiting factor for the modernization of the automotive fleet, he believes. That is why Erazo believes that the subject of mixtures should be rethought.
Meanwhile, Orozco says that a proposal under construction from some sectors could be to import gasoline better than the extra one, with 89 octane that could attract both sectors of the market, those who no longer want to pay for such an expensive supermarket and those who may prefer better quality gasoline than extra for their vehicles. Meanwhile, he comments that there has been a request from the Association of Automotive Companies of Ecuador for companies to import 95 octane gasoline. However, for now, both alternatives turn uphill due to price dynamics.
Currently in Ecuador there are 17 marketers, among which there are at least three international ones: Terpel, Primax and Shell. The latter, which is already operating in the country with two important gas stations that were previously part of the Petroecuador franchise. Both national and international companies have been classified as a group or individually as suppliers for the import of derivatives. However, as long as the supermarket market continues to lose ground and as long as extra and eco gasoline remain frozen, the business is not attractive. (I)
Source: Eluniverso
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
