ECUADOR · ENERGY

Ecuador spent US$1.254 billion in eight months holding down fuel prices, as the war between the United States and Iran lifted oil. The bill is 66% higher than a year earlier.

Ecuador spent US$1.254 billion from January to August 2026 subsidising imported fuels, Primicias reported on Wednesday, 21 October. It cites central bank data and says the total is 66% above the US$758 million of the first eight months of 2025.

The jump follows the war between the United States and Iran, which began on Saturday, 28 February 2026 and lifted oil prices. Ecuador imports almost 80% of the fuel it consumes, so every price rise lands on the state budget.

Where the Ecuador Fuel Subsidy Money Went

Diesel took most of it: US$740.4 million from January to August, 44% above the US$516 million of the same months of 2025. That happened even though President Daniel Noboa raised the diesel price from US$1.80 to US$2.80 a gallon on 13 September 2025.

Naphtha, the raw material for Extra and Ecopaís gasoline, cost US$160 million. Before March 2026, Primicias says, income from domestic gasoline sales exceeded import costs, so there was no subsidy.

Household cooking gas (LPG) added US$354 million, down 5.6% from US$375 million a year earlier. Its price is still frozen, and the three items add up to the US$1.254 billion total.

Pipes, columns and towers at the Esmeraldas refinery, lit at night, pictured in August 2015. The photo does not show the 2026 subsidy. Photo: Agencia de Noticias ANDES / Wikimedia Commons (CC BY-SA 2.0)

Why the Bill Keeps Growing

Ecuador replaced frozen fuel prices with a system of bands that move with world oil prices but cap the monthly change. Gasoline joined in June 2024, and diesel followed after Noboa partly removed its subsidy in September 2025.

The daily Extra says the government changed the band formula by decrees 444 and 468 to cushion the oil shock. Since June, diesel prices are set to fall gradually until December, even though oil has kept rising, Primicias says.

Ecuador also buys abroad most of the diesel it burns: imports equalled 87% of diesel use from January to August. Former finance minister Fausto Ortiz told Primicias that higher import volumes and a higher world diesel price raised the cost.

Primicias reported in August a subsidy of US$954 million from January to June 2026. The first half of 2022, after Russia invaded Ukraine, cost US$1.61 billion.

The two Primicias figures imply roughly US$300 million in July and August together. That is this article’s own arithmetic, not a published monthly figure.

What Drivers Pay and What the State Adds

Prices fell by US$0.04 a gallon on Monday, 12 October, and hold until 11 November. Diesel went from US$3.15 to US$3.11, and Extra and Ecopaís gasoline from US$3.21 to US$3.17.

The state adds US$1.85 a gallon on diesel, up from US$1.22, the daily Extra reported, citing Petroecuador figures. It adds US$0.67 on Extra, up from US$0.20, and US$0.84 on Ecopaís, up from US$0.44.

That puts the full cost at US$4.96 a gallon for diesel, US$3.84 for Extra and US$4.01 for Ecopaís. Super gasoline, with 95 octane, has no subsidy and rose from US$4.89 to US$5.42 on 12 October.

What It Means for US Readers

The Ecuador fuel subsidy shows how the war between the United States and Iran reaches a small oil exporter. Ecuador uses the US dollar, and Primicias notes that WTI, the US crude benchmark, is the reference for Ecuador’s own oil.

Higher oil prices lift Ecuador’s export income but also its import bill, and the subsidy is paid in dollars. Investors in Ecuador and US firms selling there should watch how the government pays for it.

For US expats and visitors, pump prices stay below cost: US$3.17 a gallon for Extra against a full cost of US$3.84. Super gasoline is the exception, at a reference price of US$5.42.

Earlier reports cover the 12 October price cut, the first cut under Decree 444 and the oil sale to Peru. The trade surplus report and the

Ecuador news page add context.

What Is Not Known

The US$1.254 billion figure was found only in Primicias, which cites the Banco Central del Ecuador. The central bank’s own table could not be opened, so the total is not confirmed at the primary source.

The sources do not say how the government pays for the subsidy, or whether it plans to cut it. Nor do they say which countries supply Ecuador’s imported fuel.

The per gallon subsidy figures come from the daily Extra, which cites Petroecuador for diesel, and match Primicias on the US$4.96 cost. Only Extra names decrees 444 and 468, and the decrees themselves were not opened.

What Comes Next

The government must set new fuel prices after 11 November, and the band formula will decide whether drivers pay more or less. The central bank’s September figures will show whether the monthly cost of the subsidy is still rising.

Frequently Asked Questions

How much has Ecuador spent on fuel subsidies in 2026?

Ecuador spent US$1.254 billion from January to August 2026 on imported fuel subsidies, according to Primicias citing central bank data. That is 66% more than in the same months of 2025.

Why did the Ecuador fuel subsidy cost rise?

Oil prices climbed after the war between the United States and Iran began on 28 February 2026. Ecuador imports almost 80% of its fuel, so the extra cost falls on the state.

Which fuel costs the state the most?

Diesel, at US$740.4 million from January to August 2026. Cooking gas cost US$354 million and naphtha for gasoline US$160 million.

What do drivers in Ecuador pay for fuel now?

Diesel costs US$3.11 a gallon and Extra and Ecopaís gasoline US$3.17, until 11 November. Super gasoline has no subsidy and has a reference price of US$5.42.

Does Ecuador use the US dollar?

Yes, Ecuador uses the US dollar as its currency, so the subsidy is paid in dollars. That is why no currency conversion is needed in this article.

Sources: Primicias, 21 October (citing the Banco Central del Ecuador); Extra, 12 October (citing Petroecuador); Primicias, prices from 12 October; Primicias, 13 August (all accessed 22 October 2026).