Decreto 390 Sets Electric-Sector Diesel at $0.8042/Gal as Thermal Fuel Rules Change
Ecuador has revised the fuel-pricing framework for thermal electricity generation as the grid faces renewed operational pressure.
Price Framework
Primicias reports that President Daniel Noboa issued Decreto Ejecutivo 390 on May 21, 2026, reforming the regulation of prices for hydrocarbon derivatives and creating a preferential fuel scheme for electric generation.
The decree replaces part of Decreto Ejecutivo 308 of June 26, 2024. Under the new language, EP Petroecuador will supply hydrocarbon derivatives from its refineries, terminals or deposits, subject to availability, to public, mixed or 100% state-owned thermal generation plants whose electricity is delivered for the public electric service and dispatched by the competent system operator.
| Fuel | Price / condition |
|---|---|
| Diesel for the electric sector | $0.8042 per gallon |
| Fuel Oil 4 at Refineria La Libertad | $0.48 |
| Fuel Oil 4 at other dispatch points | $0.62 |
Private Plants
Primicias reports that prices for hydrocarbon derivatives destined for private thermal generation or autogeneration plants will follow the industrial segment rule, where prices are defined by each actor in the commercialization chain plus applicable taxes.
The decree also orders the Agencia de Regulacion y Control de Hidrocarburos (ARCH) to issue emergency supply permits for 30 days to private plants already receiving fuel, while they regularize their industrial registration.
El Comercio reports that the decree takes effect from 00:00 on May 22, 2026, without prejudice to publication in the Registro Oficial, and assigns execution to the Environment and Energy Ministry, ARCH and EP Petroecuador.
Business Implications
| Stakeholder | Signal |
|---|---|
| Public thermal generators | Preferential fuel pricing is formalized for dispatch-linked public service generation. |
| Private thermal/autogeneration operators | Fuel pricing shifts toward industrial-segment treatment, with a 30-day emergency permit bridge. |
| EP Petroecuador | Supply obligation remains subject to availability and official dispatch programs. |
| Industrial power users | Fuel-pricing and dispatch rules may affect the economics of backup or self-generation. |
What to watch
- Monthly lists of plants eligible to receive fuel for public electric service.
- ARCH handling of the 30-day emergency permits for private plants.
- Whether fuel availability, not only price, becomes the binding constraint.
- Any cost implications for thermal generation contracts and emergency rental projects.
Sources: Primicias, El Comercio
Source
Primicias, El Comercio — “Presidente Noboa reforma el reglamento de precios de combustibles para el sector eléctrico en Ecuador”
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