Ecuadorian President Guillermo Lasso announced on Sunday that the country would cut fuel prices, sparking weeks of demonstrations, though not as strong as protesters had called for.
“I have decided to lower the price of gasoline by 10 cents a gallon and diesel by 10 cents a gallon,” he said in a broadcast speech.
The powerful Confederation of Indigenous Peoples of Ecuador (Conaie), which has been blocking roads and seizing oil wells in various parts of the country since June 13, had demanded a price cut of a further 30 cents and 35 cents respectively.
Earlier Sunday, the country’s energy ministry warned that oil production had reached “critical” levels and could halt entirely within 48 hours if protests and roadblocks continue.
The protests, which are also aimed at rising living costs, have paralyzed transport in Ecuador as roadblocks were put 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 continues, the country’s oil production will be shut down in less than 48 hours as vandalism, oil well confiscation and road closures have prevented the movement of equipment and diesel needed to keep operations running.”
“Today, the numbers show a more than 50 percent drop” in production, which was around 520,000 barrels a day before the protests, it said.
Ecuador’s economy is heavily dependent on oil revenues, with 65 percent of production exported in the first four months of 2022.
An estimated 14,000 protesters took part in the nationwide demonstrations, mostly in Quito.
Bottlenecks are already being reported in the capital, where prices have skyrocketed.
According to various sources, the violence between police and protesters has reportedly left five dead, while around 500 people were injured.
Earlier in the day, Production Minister Julio Jose Prado said the public-private economic losses from the protests would total $500 million.
“Each additional day of downtime represents a loss of $40 to $50 million,” he said Sunday.
Total losses since the protests began include 8.5 million liters of milk worth $13 million and $90 million in farm goods and livestock.
In the tourism industry, cancellations have risen to 80 percent, with at least $50 million in losses.
In addition, “12 days of downtime in the flower farming sector resulted in $30 million in truck and farm losses and damage,” Prado said.
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