US EditionEcuador Revamps Subsidy Strategy to Boost Social Welfare
13 Articles
13 Articles
According to the Executive, the said economic aid “beneficiates in a greater proportion to the groups of higher income and with high economic capacity, which generates inequity”
Ecuador Revamps Subsidy Strategy to Boost Social Welfare
Ecuador's government announces the removal of the diesel subsidy, reallocating the funds to social programs. The subsidy, deemed a financial burden, will cease, raising diesel prices temporarily. Compensation is planned for transport sectors, ensuring fares remain stable. Additional social benefits and tax refunds are part of the restructured plan.
The government announced on Friday, September 12, 2025 that the resources going to the diesel subsidy will now be directed to three measures that it calls social shield, such as the delivery of the bonus to 55,000 more families and the direct refund of the value added tax (VAT) to older adults.
Ecuador’s government eliminated the diesel subsidy this Saturday, increasing its price per gallon from $1.80 to $2.80, a measure that seeks to save $1.1 billion a year and redirect those funds to social and productive programs. Authorities promise that public transportation passage does not go up, and announce direct economic compensation to
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