The Chilean government announced historic increases in fuel prices, effective this Thursday, citing the fiscal effects of escalating international oil prices and a weakened state treasury. Government officials acknowledged the difficulty of the situation while presenting the "Plan Chile Sale Adelante" to support families.
Key points
- Gasoline (93 octane) will increase by $370 per liter, and diesel by $580 per liter.
- Minister of Government Spokesperson Mara Sedini stated the current scenario is complex due to a war and a state weakened by past mismanagement.
- Minister of Energy Ximena Rincón announced a bill to freeze kerosene prices for Autumn/Winter 2026, seeking to increase the stabilization fund by $60 million.
- Rincón attributed the lack of fiscal space to over $40 billion in debt accrued over the previous four years.
- Minister of Finance Jorge Quiroz supported prioritizing fiscal resources, noting that the Mechanism for Stabilization of Fuel Prices (Mepco) disproportionately benefits higher-income sectors.
Why it matters
The significant fuel price hike has triggered political and union criticism and caused crowding at service stations, highlighting immediate economic pressure on citizens.
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