Tuna purse seiners. (Photo: Stock File)
Diesel becomes more expensive for tuna and shrimp vessels
ECUADOR
Thursday, September 20, 2018, 01:40 (GMT + 9)
The Ecuadorian Government has decided to increase diesel price for the tuna and shrimp sectors, within the framework of the Prosperity Plan announced in August by President Lenin Moreno.
The industrial tuna and shrimp diesel has experienced an increase of USD 0.25 per gallon over the terminal price, without VAT. With this, the price of the derivative product has changed to USD 1.05 for these industries.
Meanwhile, diesel for other fisheries increased by USD 0.10 on the terminal price, without VAT, so that the price of fuel is now USD 0.95 per gallon for this sector.
These values will not change for a period of two years, said Presidency secretary general Eduardo Jurado, when making the announcement last week.
"With this, we propose exits to the excessive indebtedness and each dollar saved in subsidies will be destined to greater productive credit, generation of employment, more public works", he explained.
Secretary General of the Presidency, Eduardo Jurado. (Photo: Stock File)
On the other hand, he said that they reached several agreements to promote the competitiveness of the sector. One of these agreements is that in a period of 30 days the vessels of the fishing sector will be reclassified, incorporating in the artisanal fishery those that are less than 24 metres in length.
"These other fisheries are committed to coordinate actions with the authorities so as not to affect the fishing boats under seven metres in length," the secretary added.
Another of the commitments announced by the Government was the activation of a preferential credit line for working capital through BanEcuador and that work will be carried out on an electrical reconversion program so that the shrimp sector starts using electric energy in its pools instead of diesel.
In addition, the option of creating insurance for fishermen will be analyzed.
For the National Chamber of Fisheries (CNP), the increase in fuels "will not represent a solution to the problems caused by the mismanagement of public resources of previous governments." In this regard, the union president Rafael Trujillo said that only 5 per cent of the 31.2 million barrels of fuel that the country consumes a year corresponds to this sector, reported El Comercio.
For its part, the National Federation of Fisheries Cooperatives of Ecuador (FENCOPEC) warned that the increase in diesel will lead to an increase in production costs of the fleets of up to 45 per cent, and therefore, the price of fish will rise for domestic consumption.
José Antonio Camposano, Executive President of the National Chamber of Aquaculture
National Chamber of Aquaculture (CNA) president Jose Antonio Camposano confirmed that the announcement of the increase in diesel is the result of an agreement between the sector and the Government. "This is a measure that seeks to find a balance between the need of the State to reduce spending on subsidies to achieve a fiscal balance and prevent this from impacting the related sectors," he said.
The aquaculture leader said the announcement is the result of a dialogue that has begun since President Lenin Moreno announced that economic measures would be taken, and expressed his hope that the conversation meetings will continue between public and private sectors.
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