Fuel Prices Could Cross $3 per Gallon for the First Time on April 12

The Numbers

Ecuador's fuel band system adjusts gasoline and diesel prices on the 12th of every month based on international oil prices. The current period (March 12 through April 11) already brought significant increases:

• Extra & Ecopaís: $2.89/gallon (current)
• Diesel: $2.82/gallon (current)

Starting April 12, if the 5% monthly cap is applied in full, prices could reach:

• Extra & Ecopaís: up to $3.03/gallon
• Diesel: up to $2.96/gallon

That $3.03 figure would be the highest price ever for low-octane gasoline in Ecuador.

Why Prices Keep Climbing

The main driver is global oil prices, which have been elevated since the closure of the Strait of Hormuz during the ongoing conflict in the Middle East. Roughly one-fifth of the world's oil supply passes through that strait. With it disrupted, prices have spiked worldwide — and Ecuador's fuel band system passes those increases through to consumers, capped at 5% per month.

Ecuador eliminated blanket fuel subsidies as part of its IMF Extended Fund Facility agreement. The monthly band mechanism was the replacement — prices float with global markets, but increases are smoothed over time.

What This Means for You in Cuenca

• Taxi fares are not directly regulated by fuel prices, but drivers feel the squeeze. Don't be surprised if more drivers start declining short trips or asking for slightly higher fares
• Grocery prices will creep up. Virtually everything you buy at Coral, Supermaxi, or Feria Libre arrives by truck. Higher diesel = higher transport costs = higher shelf prices. The effect isn't immediate but builds over 2-4 weeks
• Delivery apps (PedidosYa, Uber Eats) may add fuel surcharges or increase delivery fees
• Bus fares in Cuenca remain fixed at $0.30 — the municipality subsidizes public transit, so this won't change
• If you drive, fill up your tank before April 12. Even a few dollars saved is a few dollars saved
• The tranvía is looking better every month. At $0.35/ride with no fuel cost exposure, it's the most inflation-proof way to get around Cuenca

The next adjustment comes May 12. If the Strait of Hormuz situation doesn't improve, expect another 5% increase.

Sources: Primicias, El Universo