Ecuador’s President Guillermo Lasso announced on Sunday that the country would cut fuel prices, which sparked weeks of demonstrations, though not as much as protesters have demanded.
“I have decided to reduce the price of gasoline by 10 cents per gallon and diesel by 10 cents per gallon,” he said in a broadcast address.
The powerful confederation of indigenous nationalities of Ecuador (Conai), which has been blocking roads and occupying oil wells in various parts of the country since June 13, demanded a reduction in prices of 30 cents and 35 cents respectively Was.
Earlier on Sunday, the country’s energy ministry warned that oil production had reached “severe” levels and could be completely halted within 48 hours if protests and roadblocks continued.
Protests, which are also against rising living costs, have paralyzed transport in Ecuador, with barriers set up in 19 of the oil-rich country’s 24 provinces.
“Oil production is at a critical level,” the ministry said in a statement.
“If this situation persists, the country’s oil production will be suspended in less than 48 hours because of vandalism, seizure of oil wells and road closures that have halted the transportation of equipment and diesel to allow operations to continue.” are.”
“Today, the figures show a reduction of more than 50 percent” in production, which was about 520,000 barrels per day before the protests, it said.
Ecuador’s economy is highly dependent on oil revenue, producing 65 percent of exports in the first four months of 2022.
An estimated 14,000 protesters have taken part in the demonstrations nationwide, most of them in Quito.
The shortage is already being reported in the capital, where prices have gone up.
According to various sources, five people were reportedly killed while around 500 people were injured in the violence between the police and the protesters.
Earlier in the day, Production Minister Julio José Prado said public-private economic losses from the protests totaled $500 million.
“Each additional day of downtime represents a loss of $40 to $50 million,” he said on Sunday.
The total damage since the protests began has included 8.5 million liters of milk worth $13 million, as well as $90 million in agricultural commodities and livestock.
The tourism industry has increased cancellations by 80 percent, with losses of at least $50 million.
Additionally, “in the flower farm area, the 12-day shutdown resulted in $30 million in damage and damage to trucks and farms,” Prado said.
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