Connect with us

Hi, what are you looking for?

Ecuador Political News

Ecuador introduces market-based fuel pricing- Argus Media

Ecuador landscape

Ecuador introduced a market-based price band for gasoline and diesel, effectively taking advantage of the oil price slump to usher in unpopular price reforms that the government was forced to repeal last year.

The new pricing system establishes a 5pc band around the future price of WTI crude, with monthly reviews conducted jointly by the oil and finance ministries.

The mechanism is similar to the approach taken by neighboring countries such as Chile where price spikes are mitigated by a reference price band.

Under Ecuador’s new system, retail fuel prices immediately fell as a result of the sharp decline in international oil prices. Extra gasoline dropped to $1.75/USG from a previous $1.85/USG. Diesel dropped to $1/USG from a previous $1.03/USG.

To read the full article on Argus Media, click here.

Archives

You May Also Like

Chevron Ecuador Blog Posts

1. Steven Donziger Is an Adjudicated Racketeer. The U.S. District...

News & Updates

Disbarred lawyer Steven Donziger likes to present himself to the...

News & Updates

A dishonest campaign is underway to rehabilitate disbarred lawyer Steven...

News & Updates

Steven Donziger is the best example of how a handful...