Cuenca ranked #1 again; Mazar reservoir level drops; Seniors go 7 months without tax refunds; Ecuador’s country risk falls; Jet fuel shortage could affect flights

Cuenca has been rated number one for quality of life in the 2026 South America Quality of Life Index. The city also took top honors in 2025. The ranking considers such factors as climate, cost of living, health care, crime, infrastructure and urban environment.

Cuenca beat out such as cities as Brasilia and Curitiba in Brazil and Montevideo, Uruguay for the number one position. Quito also placed high in the index, ranking seventh.

An air travel association is warning that some domestic flights in Latin America could be cancelled due to a shortage of jet fuel.

Sebastián Angulo, a journalist and economist who helped compile the index, said one of the factors in Cuenca’s favor is its large population of foreign residents. “That the city enjoys an international reputation as a good place to live was very important in our consideration,” he said. “Although the numbers are important in determining the index, the real-life experiences are probably more important.”

Mazar reservoir drops to lowest level of the year
The Mazar reservoir, which powers three hydroelectric plants, has dropped to its lowest level of the year, according to engineers at the facility in eastern Azuay Province. On Friday, the water level was 2,134 meters above sea level, 19 meters below maximum capacity.

Mazar spokesman Cristian Paliz said that recent rains have not reversed the decline in water level. “The showers, unfortunately, have been light and sporadic and the flow rate into the reservoir has been below average,” he said. On Friday afternoon, the reservoir was receiving 43 cubic meters of water per second, 50% below the optimal rate.

Paliz added that the weather forecast calls for increasing showers at the end of April and early May.

Seniors go seven months without tax refunds
Organizations representing retirees claimed Thursday that the Internal Revenue Service (SRI) has not paid VAT refunds to seniors for seven months. According to tax data, the SRI owes $164 million to almost 500,000 retirees.

Freddy Ramos, spokesman for two retiree groups, claimed the delay is one of the “longest ever” and contradicts the government claim that it has reduced payment delays. “They say that older adults are a priority for payment but they are not keeping their promise,” he said. He added he is worried the government may give in to pressure by the International Monetary Fund (IMF) to eliminate retiree tax refunds.

Two media outlets that contacted the SRI for an explanation said they received no response.

Ecuador country risk falls
Ecuador’s country risk fell to 404, its lowest since 2014, according to international Organization for Economic Cooperation and Development.

“The growing confidence of international investors towards Ecuador is reflected in the continuing reduction of country risk,” Sariha Moya, Minister of the Economy, said Thursday, pointing out that the number stood at 1,186 in early 2025. “This improvement reflects the fact that government policies designed to strengthen the economy are working.”

Jet fuel in short supply
The Latin American and Caribbean Air Transport Association (ALTA) warned Tuesday that a shortage of jet fuel could affect air travel in Latin America if the war the Middle East does not end soon. “To date, demand has been met but fuel reserves have been drawn down to critically low levels,” ALTA said in a statement.

The statement added that jet fuel represents less than 10% of the refined oil market and therefore has a “lower priority in the distribution chain than other fuel products.”

If there are fuel shortages, ALTA says domestic air routes would be the first affected. “Some flights might be cancelled, which would be disastrous for both the airlines and the traveling public,” ALTA said.