Ecuador fuel distributors announce October 6 protest over diesel margin dispute, threaten credit cuts to local governments

Ivo Rosero, president of the Cámara Nacional de Distribuidores de Derivados del Petróleo (Camddepe), stated that the sector requires an additional $0.106 per gallon to achieve viable profitability levels. Distributors contend that the current margin, shared among retailers, commercialization companies and transporters, has not been comprehensively updated in 23 years despite cumulative inflation and rising costs for wages, financing and inventory management. Some stations now operate with profit margins near one percent, and others report selling diesel at a loss after covering operational expenses. The association estimates that fuel purchases now require more than triple the working capital needed five years ago, significantly increasing financing burdens.

The government allocated approximately $150 million over the past two months to subsidize consumer fuel prices under the current pricing band system, according to Rosero. Retail prices as of September 12 stand at $3.21 per gallon for Extra and Ecopaís gasoline and $3.15 for diesel, following monthly adjustments introduced after the freeze on diesel ended in September 2025. The price of diesel has nearly doubled over the past year, rising from $1.80 per gallon, driven primarily by the Middle East conflict that began in late February 2026. President Daniel Noboa responded on September 17, stating that distributors “have made a lot of money for many years” and dismissing the protest as politically motivated ahead of local elections scheduled for November 29.

Beyond the demonstration, Camddepe has announced it will suspend credit sales to heavy transport fleets and withdraw from public tenders issued by municipal governments, provincial councils and parish boards. The withdrawal from government contracts could impede fuel supply to municipal vehicles, construction machinery and emergency fleets, potentially stalling infrastructure projects and public services. The association’s proposed solution calls for a gradual margin increase of one cent per gallon per month, contingent on a technical study validating sector conditions. Distributors in remote provinces face particularly acute pressure due to higher transport costs for fuel deliveries, costs that are not reflected in the regulated retail margin.

The margin dispute follows months of scrutiny over fuel distribution and supply reliability. State oil company Petroecuador and the hydrocarbons regulator ARCH have maintained differing positions with the distributor association regarding dispatch allocations to certain stations, though Petroecuador has asserted adequate national supply availability. The October 6 mobilization will bring together workers and station owners from across the country, with Camddepe emphasizing that the fuel retail sector is integral to national economic activity and should not be excluded from government support measures that have benefited other segments of the energy value chain.