(Energy Analytics Institute, 10.Aug.2020) — EP PetroEcuador will apply the fixation and publication of prices in Ecuador’s clean products terminals in compliance with executive decree no. 1054 of 19 May 2020, by means of which the “regulation of prices of petroleum derivatives” was amended.
The regulation — through a technical mechanism of a band system of plus or minus 5% — applies to extra gasoline; eco-country (extra with ethanol) and automotive diesel; as well as shrimp, tuna and fishing segments, P.etroEcuador announced 10 August in an official statement.
The calculation will be based on the fuel supplier’s costs and the sales prices of the previous month, through the 10 of each month so that from 00:00 on the 11th, the new prices are reflective for fuels in each of the public and private service stations across the Andean country.
For the period between 11 August and 10 September, the suggested retail price in gallons for super gasoline will be $2.27; and the maximum price for extra and eco-country will be $1.75. As for diesel 2 and premium, the prices will be $1.088. More details from PetroEcuador can be found here.
The new band system allows for control of the price of petroleum derivatives so that the rise or fall in prices is neither greater nor less than 5% compared to the price of the previous month.
The system aims to protect consumers against drastic increases in the price of a barrel of benchmark West Texas Intermediate (WTI) crude.
The new price system does not contemplate an increase in the cost of gas for domestic, agricultural, and vehicular use, so it remains frozen, with no variations in its distribution.
The new agency for the Regulation and Control of Energy and Non-Renewable Resources (ARC by its Spanish acronym) will be the entity in charge of controlling the application of the band system with fuel suppliers and traders nationwide.
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By Piero Stewart. © Energy Analytics Institute (EAI). All Rights Reserved.
