Moody’s Ratings has warned that maintaining Ecuador’s current fuel price controls could create a significant $10 billion fiscal deficit. The warning centers on the potential impact of freezing domestic fuel prices, specifically gasoline and diesel. This policy would likely increase the deficit of the Fiscal Stabilization and Economic Recovery Fund (FEP). Maintaining these subsidies places a substantial strain on Ecuador’s public finances. The credit rating agency suggests that without adjustments, the financial burden will become increasingly unsustainable. This situation presents a challenge for the Ecuadorian government as it balances social considerations with economic stability. The report highlights the need for fiscal adjustments to mitigate the growing deficit.