The nation's president Daniel Noboa emerged without injury following his presidential convoy was attacked by stone-throwing demonstrators and what authorities described as potential shots.
The president was opening a water purification facility in central Ecuador when his motorcade was set upon by a large group protesting against rising energy costs.
Approximately 500 people appeared and were throwing stones at him, and there are obviously bullet marks on the president's car
commented Ecuador's environment minister.
Authorities reported that five people were arrested and would stand court proceedings on terrorism accusations – an offense carrying a maximum punishment of three decades in prison.
Recorded material released by the government shows demonstrators positioned in the road, draped in banners, rushing to gather large stones and bricks.
As the presidential SUV passed, objects thudded into the exterior and shattered glass.
Someone could be audible yelling: "Duck! Heads down!" as the car accelerated from the scene.
Officials indicated they were still investigating whether some of the impact marks on the president's protected vehicle were caused by gunfire.
The alleged attack came amid several days of progressively aggressive demonstrations sparked by a government decision to increase fuel costs.
Demonstrators have initiated work stoppages, blocked roads and taken 16 soldiers – who were eventually released unharmed.
Ecuador's biggest Indigenous organization reported that a protester had been fatally injured by armed forces during a the rallies.
More than 100 people, including demonstrators and law enforcement, are believed to have been injured in the unrest.
Noboa has declared a emergency measures across several regions.
Noboa's office stated on digital platforms after the attack that "such actions will not deter" the president.
The head of the regional organization said that "such violent acts are an assault on democratic principles, peace, and the spirit of peaceful coexistence that must prevail in our societies."
Noboa is attempting to cut diesel subsidies to conserve about $1bn in government spending, redirecting much of the funds to safety initiatives.
Ecuador, previously regarded one of Latin America's most secure nations, has experienced a dramatic surge in criminal activity in the past few years.
Positioned between two neighboring countries, two of the world's largest cocaine producers, the country has transformed into a significant transit hub for illegal drugs.
Officials have alleged drug gangs of fueling the unrest, implying that illegal organizations are taking advantage of the protests to destabilize the country.
It is estimated that seventy percent of the world's illegal drug market passes through the country, much of it destined for the United States.
The trade has attracted international criminal organizations, including Mexico's Sinaloa Cartel, Italian mafia groups, and Albania's mafia.
The rivalry for dominance of smuggling corridors has transformed the nation into one of the area's most dangerous locations.
The president has proposed a public vote to allow the presence of US troops to the country, overturning a 2009 ban on international military installations.
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