Ecuadoran President Daniel Noboa announced on Friday the surprise elimination of a diesel subsidy, a politically risky move in a country where similar steps have sparked violent protests.

Under a decree signed by Noboa, the price of diesel for the automotive sector will rise from $1.80 to $2.80 per gallon (3.8 liters) through early December, allowing the government to redirect $1.1 billion to social assistance and agricultural support programs.

Starting December 12, a new price formula will be introduced.

Authorities have emphasized that the change should not impact the price of public transportation.

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The government has argued that the benefits of the diesel subsidy largely go to high-income groups, exacerbating inequality.

Efforts by the South American country’s two previous presidents to eliminate fuel subsidies were met by violent protests spearheaded by the Conaie Indigenous organization.

Conaie activism is credited with unseating three Ecuadoran presidents between 1997 and 2005.

AFP

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