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Ecuador Spent $2.74 Billion In 2011 On Fuel Subsidies-Petroecuador GM

• http://online.wsj.com
 

QUITO (Dow Jones)--Ecuador spent about $2.74 billion in fuel subsidies last year, including gas for cooking, Petroecuador General Manager Marco Calvopina said Tuesday.

The government expects to spend about $3 billion in 2012 on fuel subsidies and nearly $5 billion on all subsidies. This includes the Human Development Bond, a direct subsidy for poor people, which seeks to guarantee minimum levels of consumption, among other things.

The amount spent on fuel subsidies in 2011 was equal to about 11% of the fiscal budget approved by the National Assembly.

Calvopina told reporters that of the total spent in oil subsidies last year about $1.14 billion, or 42%, went to diesel; $891 million to gasoline; and $707 million to cooking gas.

President Rafael Correa has said several times that most of the current fuel subsidies are received by high-income earners, and it is necessary to refocus the subsidies to give more to the poor.

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