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News > Ecuador

Ecuador: Government Announces More Neo-Liberal Policies

  • Ecuadorean government has announced new price hikes in gasoline.

    Ecuadorean government has announced new price hikes in gasoline. | Photo: Ministerio de Economia y Finanzas Ecuador

Published 18 December 2018

Former President Rafael Correa has criticized the measures implemented by the current government of Moreno.

The Ecuadorean government announced on Tuesday, another hike in gasoline prices for lesser octane fuels (Extra and Ecopais). This is the second hike in the prices of gasoline from the government of Lenin Moreno during 2018.

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"By mandate of President Lenin Moreno we have decided to put an end to this type of absurdities, such as subsidies (...) that prevent us from continuing with social projects," said the minister of finances Richard Martinez. The reduction of the subsidies, meaning an raise in the price of these types of gasoline from U$D 1,48 to U$D 1,85 or U$D 37cents per gallon.

According to Minister Martinez, the measure is part of the process of "optimization of the State," that the current government led by Lenin Moreno is leading. In August, when the first hike in prices happened and supposedly no other hikes would come, the government said that maintaining the subsidies meant that the State had to get credits, but the Moreno government has received since a U$D 900 million credit loan from China.

"This increase will not affect taxis or public transport. Especially of goods to avoid a price escalation," said Martinez, responding to several critiques that have risen, as the price hikes of other products are one of the main concerns for several analysts.

"Diesel for public transport and gas used by Ecuadorian families for cooking will not be modified," said Minister Martinez. In the same press conference, where Minister of Labor, Raul Ledesma, and the Secretary of the Presidency, Juan Sebastian Roldan, were present, it was also announced that the salaries of the highest positions in the government would be reduced by five percent.

"10 years without paquetazos (economic packages and price hikes), despite earthquake and (oil) barrel at less than $ 20. This is a consequence of the "Business" Government. - Billions were forgiven. - Barrel of over U$D 42 than budgeted. - refinery, Tiputini and hydroelectric plants give them U$D 2,100 million."

Former President Rafael Correa has criticized the measures implemented by the current government of Moreno, as the country is plunging into deep neoliberal austerity measures for the State and tax reductions for corporations and banks.

The Ecuadorean National Assembly has to analyze and accept the reform presented by the executive branch of the State. "Today, we ask those people who have more, for an extra effort to pay for the gasoline in their cars, a price closer to what is seen in our neighboring countries. The State stops paying about USD $ 400 million dollars that will allow us to maintain a much more prudent administration, "Martinez concluded.


Lenin Moreno
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