# Ecuador fuel subsidy and pricing regulation

> Live situation record from CLSTR: https://clstr.news/situations/ecuador-fuel-subsidy-and-pricing-regulation
> Updated: 2026-08-12T07:28:07.000Z. Sources: 19. Developments: 2.

In Ecuador, the government has maintained a system of fuel subsidies to mitigate price spikes. Vice Minister of Hydrocarbons Eduardo Racines stated that speculation regarding the removal of domestic gas subsidies was “totally discarded,” noting that the state provides a discount of approximately 20 cents per gallon for diesel, Extra gasoline, and Ecopaís.

However, Super gasoline remains excluded from these subsidies and the price band mechanism, leaving it subject to a free-market regime. By August 2026, President Daniel Noboa signed Executive Decree 468 to further regulate fuel costs. This decree modifies the pricing formula for Extra gasoline, Ecopaís, and premium diesel to better align national costs with international petroleum prices. The reform introduces a mechanism intended to prevent abrupt fluctuations by allowing for monthly terminal sale price reductions between 0.75% and 1.5% when the exceptional mechanism is activated.

Effective August 12, 2026, following the implementation of Decree 468, regulated fuels saw minor downward adjustments: Extra and Ecopaís gasolines decreased slightly to $3.24 per gallon, while diesel dropped to $3.18 per gallon. Conversely, Super gasoline—which is subject to free-market pricing—experienced a significant reduction of 87 cents, falling from $5.61 to $4.74 per gallon. This sharp decline in Super gasoline follows a period of high costs driven by geopolitical tensions in the Middle East.

These shifts have impacted various sectors. The National Federation of School and Institutional Transport reported that the removal of diesel subsidies has increased sector costs by 30% to 33%. Additionally, energy costs imported from Colombia have surged, with prices reaching 33 cents per kWh, nearly double the 17.2 cents per kWh projected by the National Electricity Operator (Cenace).

## Claims

- Cenace projected an average price of 17.2 cents per kWh for energy imported from Colombia for August 2026. (single source)
- The Ministry of Environment and Energy reported that energy imported from Colombia cost 33 cents per kWh on August 5. (single source)
- The cost of imported energy on August 5 was 91% higher than the average projected by Cenace. (single source)
- Super gasoline in Ecuador operates under a free market regime and is not subject to the state's band system. (single source)
- The suggested price for Super gasoline dropped by 87 cents, from 5.61 to 4.74 dollars per gallon. (single source)
- President Daniel Noboa issued Executive Decree 468 to modify the mechanism for adjusting fuel prices. (single source)
- The removal of the diesel subsidy caused an impact of 30% to 33% on transport sector costs. (single source)
- Colombia is delivering thermal energy to Ecuador according to resolution 40035. (single source)

## Timeline

### 2026-08-12: Fuel prices and purchasing power shift in Argentina, Ecuador, and Spain

Fuel prices are fluctuating globally: Argentina faces a 558% surge eroding purchasing power, Ecuador implements new pricing decrees and subsidies, and Spain increases diesel tax relief to combat inflation.

19 sources. https://clstr.news/cluster/fuel-price-updates-reported-in-ecuador-and-colima-mexico

### 2026-07-14: Ecuador maintains gas subsidy while Super gasoline stays pricey

Ecuador keeps its domestic gas subsidy, but Super gasoline remains unsubsidized and costly at $5.61 per gallon.

3 sources. https://clstr.news/cluster/ecuador-maintains-gas-subsidy-while-super-gasoline-stays-pricey

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Cite as: Ecuador fuel subsidy and pricing regulation. CLSTR, https://clstr.news/situations/ecuador-fuel-subsidy-and-pricing-regulation