ECUADOR FACES PROTESTS AND STRIKES AFTER DIESEL SUBSIDY ENDS. (PHOTO).

Ecuador faces protests and strikes after diesel subsidy ends

Streets across several Ecuadorian provinces have been disrupted by roadblocks and protests after Indigenous and student groups called an indefinite national strike. The unrest escalated four days ago following President Daniel Noboa’s decision to end the diesel subsidy, a benefit that had been in place for more than 40 years.

The executive decree, formalized Sept. 13, raised the price of a gallon of diesel from $1.80 to $2.80, a move the government said would save over $1.1 billion annually. Transport workers, farmers, and social organizations immediately opposed the increase, arguing it would drive up living costs and raise prices for essential goods. In response, the government declared a state of emergency in at least eight provinces and imposed nightly curfews in five to contain the unrest, which has blocked major highways and heightened political tensions.

Leonidas Iza, former president of the Confederation of Indigenous Nationalities of Ecuador, criticized Noboa’s approach, saying the government “does not understand the 5.7 million Ecuadorians who live on about $92 a month” and described the president as having “an authoritarian, dictatorial attitude.” Despite the widespread disruption, Noboa stood firm on ending the subsidy, promising expanded stipends and compensation programs. “Before they try to make me back down, I would rather die,” he said, noting that, unlike former presidents Lenín Moreno and Guillermo Lasso, he will not reverse course.

The government justified the subsidy’s elimination as necessary to balance public finances and reduce what it called “unsustainable” spending. Officials said the subsidy primarily benefited the transportation and agricultural sectors and contributed to diesel smuggling into neighboring countries. Finance Ministry reports indicate that roughly $25 million was saved in the first ten days, with funds redirected to social programs, compensation payments, and support for farmers and transport workers.

Deputy Hydrocarbons Minister Daniela Conde announced plans to invest $3.6 billion over four years to upgrade Ecuador’s three refineries, aiming to improve diesel quality and boost energy independence. The government expects daily oil production to reach 500,000 barrels by the end of the year, rising to 536,000 barrels by 2027, compared with current production of under 470,000 barrels, while reducing nearly $7 billion spent annually on diesel imports.