Gasoline prices drop but probably not for long, as war in Middle East reignites; Country loses more power generation; Ecuador-Peru border crossings reopen

The price of gasoline dropped Sunday for the first time in five months but officials warn lower rates could be short-lived. “Prices are determined by international market factors and the recent resumption of hostilities in the Middle East is likely to drive prices higher in the future,” a spokesman for the Hydrocarbons Ministry said. The price for Extra and Ecopais dropped to $3.27 a gallon from $3.31 while the price of diesel dropped to $3.20 from $3.25. The price of Super was adjusted down to $5.61 from $5.70. Gasoline and diesel prices dropped Sunday, but officials say they could soon rise again as a result of the war in the Middle East. Because Energy Ministry rules limit the rate of fuel price adjustments to a maximum of 5%, the government has spent an additional $750 million for imported gasoline and diesel in 2026. The ministry says most of the expenditure was the result of the “unexpected rise of oil prices due to of the war with Iran.” The balance was a subsidy paid to bus and trucking companies. Country loses more power generation The government announced last week that it will not extend the lease of a Turkish power generation barge that came into service during the 2024 electric blackouts. The Public Procurement Office said a “contractual dispute” with barge owner Karpowership means the barge will cease operations and leave its anchorage at Guayaquil by the end of the month. Two other thermal generation barges remain under contract with Karpowership until the end of 2027. Each barge generates up to 100 mg of electricity. The loss of the barge means the country’s electrical grid will lose 200mg of power generation in less than a month. Two weeks ago, the Energy Ministry announced that a 100mg thermal generation plant in Esmeraldas has closed for 11 to 12 months for repairs and upgrades. On July 1, the Energy Ministry announced it is “actively pursuing” additional electricity sources in advance of the approaching El Niño, which could reduce hydrogeneration at facilities at Mazar and the Rio Coca. Ecuador-Peru border crossings reopen Three border crossings between Ecuador and Peru reopened Friday for the first time in six months. The crossings on highways in Macara, Zapotillo and Lalamor were closed in January for “security purposes,” according to Ecuador’s government. The reopenings followed recent protests by public transport and trucking companies who claimed the closures have cost “hundreds of jobs and millions of dollars to the people of Peru and Ecuador.” In announcing the reopening of the border, Government Minister Nataly Morillo said that “security controls have been installed” to insure the safe passage of trucks, buses and private vehicles through the border. “We understand the difficulties and hardship the closure caused but it was necessary because of our ongoing fight against organized crime.” Critics of the closure claimed that the transport of illegal gold and drugs comes primarily through unregulated back roads that the government does not patrol. The post Gasoline prices drop but probably not for long, as war in Middle East reignites; Country loses more power generation; Ecuador-Peru border crossings reopen appeared first on CuencaHighLife.