LatinNews Daily - 15 September 2025

*Ecuador’s government led by President Daniel Noboa has announced the elimination of diesel subsidies as part of a series of cost-saving measures. In a video address, Economy and Finance Minister Sariha Moya said that the subsidy costs around US$1.1bn per year and that these funds will instead be spent on measures to reduce social inequalities and boost production. She said that subsidised fuel benefits smuggling gangs and rich Ecuadoreans who can afford to pay the full price. Transport Minister Roberto Luque said that the cost of public transport will not increase as the government will spend US$220m compensating transport companies for their higher costs. The minister for economic and social inclusion, Harold Burbano, said that some of the savings from the diesel subsidies will be redirected to expand provision of the human development benefit and to reimburse value-added tax (VAT) payments for the elderly. The elimination of diesel subsidies is likely to trigger protests, having been strongly criticised by the umbrella indigenous organisation, Confederación de Nacionalidades Indígenas del Ecuador (Conaie), and the umbrella workers’ union, Frente Unitario de Trabajadores (FUT).

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