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Seeking to end protests, Ecuador announces fuel price cut

Ecuadorian President Guillermo Lasso said Sunday he would cut gasoline and diesel prices by 10 cents a gallon, the latest government concession to try to end nearly two weeks of protests; in which at least six people died.

Demonstrations, sometimes violent, demanding lower prices for fuel and food, among other things, began on June 13 and reduced Ecuador’s oil production.

Lasso, whose adversarial relationship with the National Assembly worsened during the protests, had already announced fertilizer subsidies and debt relief, and his government met this weekend with indigenous groups.

The leader of the indigenous organization Conaie, Leonidas Iza, signaled that issues such as gasoline prices were still pending, promising to keep the demonstrations going until they were resolved.

“Everyone considers that prices have become the centerpiece of the maintenance of the conflict and, although we, as a government, are very clear that this factor is not the origin of the problems of Ecuadorians, we must think about the common good and the peace of the citizens” , said Lasso.

“I decided to reduce the price of gasoline and also diesel by 10 cents per gallon,” the president said.

Lasso froze prices for extra gas at $2.55 a gallon and diesel at $1.90 a gallon in October last year, triggering an initial spate of protests. Extra gasoline will now cost $2.45 a gallon, while diesel will cost $1.80, both even higher than Conaie had requested.

Ecuador’s oil production has halved because of roadblocks and vandalism linked to the protests, according to Ecuador’s Ministry of Energy.

“The level is critical. Today the numbers show a reduction of more than 50%,” the ministry said in a statement. “In 14 days of demonstrations, the Ecuadorian state has not received around US$ 120 million”.

Vandalism, the seizure of oil wells and road closures prevented the transport of needed supplies, the ministry said. Before the protests, oil production was around 520,000 barrels a day.

The public oil sector, private flower and dairy producers, tourism and other businesses lost about $500 million, the Production Ministry said.

Residents of Quito complained about the lack of products and Lasso said that hospitals in the city of Cuenca were suffering from a lack of oxygen.

Lawmakers broadened the debate on Sunday about an effort to remove Lasso from office, although it appears opposition groups still don’t have the support they need to do so.

Source: CNN Brasil

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