Ecuador's diesel demand has fallen by 14pc nationwide and more in border areas since President Daniel Noboa reduced the fuel's subsidy to cut costs and illegal use on 13 September, sparking protests over the price rise.
Diesel consumption stood at 71,400 b/d from 13-25 September, compared with 82,800 b/d from 1-12 September, according to data from the energy ministry. The price of diesel rose to $2.80/USG on 13 September from $1.80/USG, where it had stood since April 2004.
Diesel demand fell more steeply in border provinces where Noboa had argued diesel was being smuggled to higher-priced markets in Colombia and Peru. Salesin the northern province of Carchi, which borders Colombia, reached an average of 6,710 b/d from 13-25 September, down by 26pc compared with 1-12 September. In the southern El Oro province that borders Peru, diesel consumption fell by 23pc to 4,600 b/d.
The government argues that both provinces are where most of the fuel smuggling to Colombia and Peru takes place. In Colombia's southern department of Narino, diesel costs about $2.60/USG, according to Colombia's regulatory agency, 44pc higher than the previously steeply subsidized price of $1.80/USG in Ecuador.
In the northern city of Aguas Verdes in Peru, which borders Ecuador, diesel costs around $4.30/USG, according to the Peruvian energy regulatory board Osinergmin, double the previous price in Ecuador.
Diesel use in Imbabura province, about two hours north of Quito, also fell by 36pc to 1,700 b/d for 13-25 September, compared with the same period. The government has said that illegal miners use diesel for machinery. Registered industrial users should pay a variable non-subsidized diesel price, that stands at about $3.03/USG now.
Road blocks
Protests over the price rise, led by the confederation of indigenous nationalities Conaie, entered its 11th day today, with a dozen road blockades in five out of Ecuador's 24 provinces, all in the Andean region.
Most of the protesters are members of indigenous groups, but some university students have joined them in Quito.
One farmer from Imbabura province died while participating in the protests, although the government disputes Conaie's accusation that soldiers killed him. Protestors held 17 soldiers who tried to clear highways in the same province for about five days, releasing them beaten and with broken noses, the government said. Business owners in Imbabura, which relies on tourism and flower exports, complain of losing hundreds of millions of dollars because of the blockades.
The government plans to approve a cash compensation by the end of the week of about $200/month for three months to owners of commercial vehicles such as trucks or vans, transportation minister Roberto Luque said. It had previously approved compensation of $400-$1,000/month for bus owners for the same period to help offset higher costs. No major transportation unions have joined the protests.
Conaie rejected a compensation plan of a one-time $1,000 payment for farmers.
The government said that from September-December it will save about $424mn because of the diesel subsidy change, and about $1.1bn in 2026.
