After several hours of deliberation, and a return to the negotiation table after everyone thought it was over, the government of Ecuador and the leaders of the indigenous protests have reached an agreement to end the paro (strike).
Among the concessions is an additional 5 cent reduction in the price of low-octane gas and diesel bringing the final price of each to $2.40 and $1.75, respectively. Premium high-octane gas is imported and will continue to fluctuate with the commodity market. It’s currently around $4.90/gallon.
The government will also subsidize the cost of fertilizer. Prior to Russia’s invasion of Ukraine, 38% of the fertilizer used in Ecuador came from Russia. However, the resulting trade embargoes placed on Russia are preventing those imports. Without that supply, the resulting scarcity and competition for other non-Russian sources has driven up the price.
There were several other parts of the agreement, including the establishment of a process for managing and monitoring the projects that will take more time to implement.
We expect the road closures will be dismantled soon and the mingas (public cleanup) will begin tomorrow after everyone parties tonight.
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