Ecuador to end fuel subsidies

Ecuadorian President Lenin Moreno announced that the $1.3 billion subsidy for gasoline and diesel will be eliminated, raising the cost of both.

Ecuadorian President Lenin Moreno announced this week an end to government subsidies that hold down fuel costs. The Government of Ecuador will send congress a proposal to overhaul taxes and labor rules in an attempt to revitalize the national economy, reports Voa News.

Moreno addressed Ecuadorian citizens through tv and radio to announce that he was eliminating the $1.3 billion subsidy for gasoline and diesel - the price of gasoline will raise from $1.85 to $2.30 a gallon, and the cost of diesel from $1.03 to $2.27.

This tax overhaul bill includes a provision for a three-year special tax on companies with annual revenue above $10 million. "The goal is more work, more entrepreneurship and better opportunities ... boosting economic growth and employment," Moreno claims.