[Stoves] LPG subsidy to be removed in Ecuador

[Andrew C. Parker]

[I am posting this edited response to questions by Paul Anderson, on his  
suggestion.]

President Correa announced plans to end the subsidy, last Saturday: El  
Universo, Guayaquil, Ecuador, Domingo, 4 de Agosto, 2013, "Rafael Correa  
anuncia fin del subsidio al gas al operar hidroeléctricas",  
<http://www.eluniverso.com/noticias/2013/08/04/nota/1242151/fin-subsidio-gas-operar-hidroelectricas>.  
Note that the subsidy for "combustibles" (I don't know what percentage of  
it is LPG for cooking) costs nearly 4 billion dollars annually.  At $1.60  
for 15 kilos, there is, and has been for decades, a thriving black market  
in subsidized LPG for commercial use and transportation, as well as for  
export (often to country the gas was purchased from).

A friend of my wife's has a small NGO that used to take donated items to  
Ecuador, but she is about to shut it down because of the aggressive  
actions taken against NGOs the past couple of years.  You can review  
donation rules here: <http://www.aduana.gob.ec/pro/donations.action>.  
Please note that donations are only exempt from import duties if they are  
going to a government agency or to a non-profit who has a valid contract  
to provide services for the government.

I know there is interest in biomass in Ecuador.  A few years ago, the  
father of a university student asked me if I could get him a GEK kit, but  
it proved too complex and costly.  EcoSur in Riobamba makes biomass  
briquettes (referenced in a post by Aurea de Andrade), and list member (I  
hope he is still monitoring the list) Xavier Cevallos is(was?) in  
Guayaquil.

The subsidy for gas has always been the chief obstacle to any alternative  
fuel in Ecuador.  Honestly, I would have preferred that the subsidy be  
continued indefinitely (perhaps at a more reasonable price), but the  
inefficiencies of central management of the petroleum sector have been  
forcing the government to purchase gas on the open market, so they are not  
just paying opportunity costs.

This electrification scheme seems a bit pie-in-the-sky, so I am not sure  
it will ever happen.  The LPG shortages are real and immediate, so there  
is some pressure mounting to fix it or find reliable and economical  
alternatives.