Ecuador reverses fuel subsidy decision

Government backtracks after seizure of key oil fields and infrastructure decimate production

Anti-austerity protests mobilised across Ecuador against the government’s decision to end a 40-year subsidy on fuel prices—driving President Lenin Moreno from the capital Quito and prompting the state-owned oil company Petroecuador to declare force majeure on oil exports—have finally ended after the government agreed to broker a deal with indigenous groups. Moreno announced that the government will now annul the cancellation of subsidies, part of a programme of austerity measures agreed with the IMF. Last year, the organisation approved a $4.2bn loan with the Ecuadorian government to assist the country with debt issues. The IMF highlighted poorly-targeted fuel subsidies as a key chunk of gov