Ecuador extends diesel compensation for inter‑provincial transporters to nine months

President Daniel Noboa signed Executive Decree 428 on 19 June 2026, extending the state compensation for inter‑provincial and intraprovincial public‑transport operators from eight to nine months. The measure follows the removal of the diesel subsidy and aims to offset higher fuel costs, preventing immediate fare increases for users. Compensation for intracantonal services (urban, rural, combined) remains at eight months, with a provision that it could be prolonged up to four additional months based on assessments by the Committee of Energy Optimization. The compensation scheme, created in September 2025, has already allocated more than US$177 million to roughly 57 000 transporters nationwide. This extension is the latest adjustment after a May 2026 increase for the same segment, reflecting ongoing government efforts to balance fiscal sustainability with transport affordability.

The decree does not automatically guarantee further extensions; future continuations will depend on macro‑economic reviews and fuel‑price trends. Transport unions have welcomed the additional month as relief for operators heavily dependent on diesel.

The policy underscores the administration’s broader strategy to manage public‑sector spending while shielding vulnerable users from inflationary pressures linked to global energy markets.