Published 06:56 IST, November 14th 2019
Ecuador oil minister Carlos Perez resigns weeks after scrapped fuel price hike
Carlos Perez, oil minister of Equador announced his resignation on Nov 12 and said that it is his personal decision to spend some time with his family.
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The oil minister of Equador on November 12 announced his resignation and said that it is his personal decision to spend some time with his family. His decision came weeks after the country faced violent protests over a surge in fuel prices. Lenin Moreno, the President of Equador rolled back a plan to get rid of costly fuel subsidies in October as part of an International Monetary Fund financing package after indigenous groups clashed with the forces demanding Moreno’s resignation. In a news conference, Perez who is also in charge of the energy and mining sectors said that he would be resigning from his post after spending two-and-a-half-years.
Protestors demand the return of scrapped subsidies
Moreno had discussed with the indigenous leaders who led the protests to determine how to close the fiscal gap without a drastic increase in fuel price that escalated the October unrest. He has not announced any palpable plans to support the government finances. According to the reports, Moreno has agreed to reaccess the subsidies, but not necessarily revoke them. The protestors are demanding the return of fuel subsidies that the government scrapped as a part of austerity measures. The widespread protests that continued for nearly two weeks unleashed chaos in the capital. President Moreno also announced a curfew that was imposed in Quito and surrounding areas enforced by the military.
Background of the protests
Moreno ordered the joint forces to immediately take steps to maintain peace and order in the nation and declared a national emergency for two months. The protests began after the government declared an end to fuel subsidies as part of public spending cuts agreed with the International Monetary Fund (IMF) in return for a loan. The deal made in March will allow Ecuador to borrow $4.2bn (£3.4bn). Moreno said that the fuel subsidies with a yearly cost of $1.3bn were no longer affordable, and eliminating them will perk up Equador's economy and ease its debt burden.
13:56 IST, November 13th 2019