Ecuador's President, Lucio Gutierrez, has announced that the government will raise fuel prices by more than 35% as part of a new economic austerity plan.
Mr Gutierrez said he will also put a freeze on public sector workers' salaries for the rest of this year.
The former army colonel, who was sworn in four days ago, told reporters he had inherited a hole in this year's budget of more than $2bn, from his predecessor, Gustavo Noboa.
The announcement comes as Ecuador is trying to get approval for a loan from the International Monetary Fund of a $500m, to help pay off debts.
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