Ecuador faces turmoil one month after ending diesel subsidy: Video
A month after President Daniel Noboa’s government eliminated Ecuador’s diesel subsidy, the country remains engulfed in protests, road blockades, and growing political tension.
What began as an economic measure has spiralled into a national crisis, exposing the deep divisions between the government and the country’s Indigenous and working-class communities.
The controversial reform, enacted in mid-September 2025, raised the price of diesel from $1.80 to over $2.80 per gallon. Noboa’s administration argued that the subsidy—costing the state more than $1 billion a year—was unsustainable and often exploited by smugglers. Officials say the savings will be redirected to social programmes and production incentives. Yet, for millions of Ecuadorians who depend on diesel for transport and agriculture, the move has instead meant higher living costs and greater uncertainty.
According to government data, national diesel consumption has fallen by around 13–14 percent since the policy took effect, with steeper drops of over 25 percent in border provinces such as Carchi and Imbabura. While authorities present this as proof that the reform is working, unions and Indigenous organisations see it as evidence of an economic slowdown and declining livelihoods in rural areas.
The public backlash has been fierce. The Confederation of Indigenous Nationalities of Ecuador (CONAIE), transport unions, and farmers have led weeks of demonstrations demanding the reversal of the policy. Security forces have clashed repeatedly with protesters, prompting the government to declare a state of emergency in several provinces. At least one person has died, more than a hundred have been detained, and some are facing “terrorism” charges—a move that rights groups have criticised as excessive.
Tensions reached a new peak when President Noboa’s convoy was attacked with stones in Cañar, an incident the government described as an assassination attempt. The episode underscored how fragile the situation has become. A month on, Ecuador stands at a crossroads: between the promise of economic discipline and the mounting demand for social justice. Whether Noboa can restore calm without losing public trust remains an open question.
This story is written and edited by the Global South World team, you can contact us here.
