Gasoline shortages blamed on deterioration of the Esmeraldas refinery and war in Iran

First blamed on rumors, long lines at gas stations in Quito and Guayaquil over the weekend are the result of reduced shipments to distribution centers, officials said Sunday. The Agency for Regulation and Control of Hydrocarbons (ARCH) acknowledged Sunday that lower inventories in coastal storage facilities required a reduction of shipments to major cities.

A fuel distribution center in Guayaquil.

The Beaterio terminal in Quito is receiving 100,000 gallons of Extra gasoline a day, ARCH reported, down from the normal 150,000-gallon delivery. A similar reduction have been ordered for the Pascuales terminal in Guayaquil.

In both Quito and Guayaquil, gas station supplies of Extra were exhausted early Saturday and Sunday afternoons and motorists were told to return the next morning.

The government press office released a statement Saturday blaming back-ups at gas stations on “unfounded rumors,” and said there were adequate supplies for all of the country’s needs.

In a Sunday statement, ARCH said there was “no need for panic” and that plans are being made to maintain sufficient supplies throughout the country. “We have activated protocols and ordered Petroecuador to prioritize the dispatch of fuel to locations where shortages occur,” the agency said.

Ivo Rosero, president of the National Chamber of Fuel Distributors, said the supply problem is not new. “It happened in 2024 and 2025 due to structural problems at the Esmeraldas refinery,” he said. He blamed the refinery problems on a “lack of government investment” for repairs and upgrades.

He added that the war in Iran and disruptions to the international fuel supply chain could make the current shortage in Ecuador “much more severe.”

Because of reduced refining capacity, which he claims is now less than 50%, Rosero said Esmeraldas is primarily producing asphalt and jet fuel. “There was a fire in March and not all the damage was repaired, which limited the amount of car and truck fuel that can be produced,” he said. “We know that the refinery’s water vapor system has a high level of vulnerability and this is the system used to refine these fuels, so it is working at very low capacity.”

He said Ecuador is now importing almost 90% of its fuel, an increase from the 73% of diesel and 77% of gasoline previously imported. “Besides our own problems, we are now facing the disruptions of the war in the Middle East as well as increased costs.”

He added that it is “embarrassing” that an oil producing country is forced to import most of its fuel. “If we had modern, functioning refineries, we could satisfy all of our fuel needs. As it is, most of our oil is shipped abroad.”

Stewart Morrison, a Quito energy consultant to mines and large corporations, compares the fuel shortage to the electricity crisis. “There’s a lack of planning and a lack of investment in both sectors that goes back 10 or 12 years,” he said. “The official policy has been to apply patches and add-ons to deal with problems and a refusal to develop systematic improvements and to provide the funding.”

Although Morrison hopes the gasoline shortage will be short-term, he says the war in Iran is the “wild card.” “Beyond a certain point, all projections are a crap shoot.”