Cuenca fuel distributors blame local diesel shortage on PetroEcuador incompetence

Fuel distributors and service stations in Cuenca are blaming PetroEcuador for a shortage of diesel fuel in Azuay, Cañar and Morona Santiago Provinces. “Our agreement with them is for the timely delivery of fuel and they have failed, putting transport companies and businesses at risk,” said Carlos Salazar, president of the local distributors’ collective.

Workers fill fuel tank trucks at the Pascual terminal near Guayaquil.

Salazar says supplies delivered by PetroEcuador to the Cuenca fuel terminal in Challuabamba have been “far below the need” since last Friday.

PetroEcuador, a public company, is blaming the delivery problem on vandalism and theft on its Pascual-to-Cuenca pipeline. It claims that “punctures” in the pipeline have required a temporary pipeline shutdown and says until repairs are completed, Cuenca area distributors should load fuel at the Pascual terminal near Guayaquil.

Salazar claims PetroEcuador’s explanation and recommendation makes no sense. “There have been thefts on the line for years and they have been repaired quickly and we suffered no delivery disruption,” he said. As for the recommendation that Cuenca distributors send tanker trucks to Pascual to load fuel, Salazar says it is impractical. “It adds 10 to 15 cents per gallon to our cost. We have a signed agreement with PetroEcuador that they will deliver to Cuenca, and they are in violation of that agreement.”

Salazar says the supply breakdown comes at a critical time. “Because of the electric blackouts, demand for diesel has increased 130% from a year ago. People’s livelihoods are at stake and PetroEcuador is telling us they don’t care.”

President of the National Chamber of Petroleum Distributors Ivo Rosero agrees with Salazar. “This problem has been going on in various parts of the country since the beginning of October and we continue to get evasive, even cavalier answers from PetroEcuador management,” Rosero says. “The pipelines that serve Santo Domingo and Ambato have been out of service for 15 days and we are told to send tankers at our own expense to the Quito terminal for fuel.”

As far as the “punctures” in pipelines, Rosero says PetroEcuador has a responsibility to protect and secure its delivery system. “This has happened before and they handled the problem, so why not now.”

He added that the situation in Cuenca is especially inexcusable. “The Cuenca terminal provides fuel to a large part of southern Ecuador and the idea that local distributors are expected to drive for hours through the mountains to Guayaquil is an outrage.”