Heat ¼ cup olive oil in a large saucepan set over medium heat.
Add the red onion, eggplant, red bell peppers, jalapeño, sugar, and a generous pinch of salt and cook, stirring occasionally, until vegetables soften, about 15 minutes.
Add the garlic, paprika, onion powder, and red pepper flakes and cook, stirring, until fragrant, 1-2 minutes.
Stir in the tomatoes with their juice, the remaining 2 tablespoons of oil, 1 teaspoon of salt, and a generous amount of black pepper.
Bring mixture to a simmer; reduce heat to low and cook, partially covered and stirring often, until the vegetables are tender and the mixture thickens, 10 to 15 minutes.
A few times during the cooking process, mash the vegetables a bit with a potato masher or a fork.
Taste for seasoning.
Remove from heat and let cool to room temperature before serving. Inspired by Food52
