Ecuador Adjusts Transporter Compensation Calculation

Ecuador's government has officially revised its economic protection measures for national transporters, introducing a new compensation calculation method via Executive Decree N.° 447. Signed by President Daniel Noboa on July 11, 2026, in Guayaquil, this decree updates the system previously set by Decree 306, responding to international fuel price volatility.

The core change lies in the calculation of monthly monetary transfers. Instead of a fixed amount, the compensation will now be determined by a specific technical formula. This formula involves multiplying the authorized consumption volume by the difference between a "base gallon price", an average of the public selling price for extra and extra with ethanol gasolines in the first half of 2026, and the monthly public selling price communicated by the Ministry of Environment and Energy. This adjustment aims to more accurately reflect the impact of fuel prices on transporters' costs while ensuring fiscal sustainability.

The updated policy is designed to prevent increases in public transport fares. It maintains coverage for previously included transport modalities: conventional taxis, executive taxis, light cargo transport, mixed transport, and commercial three-wheeled taxis/motorcycle taxis. The Ministry of Infrastructure and Transport, the ministry overseeing the hydrocarbon sector, the Internal Revenue Service (SRI), and the Social Registry Unit are tasked with implementing and executing this policy. They are expected to issue secondary regulations to ensure the support is delivered responsibly, transparently, and efficiently, keeping the stabilization mechanism within fiscal sustainability parameters.

This reform took effect immediately upon its signing, based on technical recommendations from the Energy Optimization Committee (Coener). The move seeks responsible management of the country's strategic resources. The government's action comes as Ecuador faces another fuel price adjustment on July 12, 2026, amidst falling oil prices.