The government of José Antonio Kast announced a historic increase in fuel prices in Chile, set to take effect next Thursday. Gasoline will rise by 32% and diesel by 62%, in response to the surge in oil prices due to the conflict in the Middle East, which has pushed crude oil prices above 100 dollars per barrel.
Finance Minister Jorge Quiroz explained that the measure is necessary to reflect international costs and to control public spending in light of an inherited deficit. This has raised concerns among the population, which has already begun to form long lines at gas stations to stock up before the price adjustment, a behavior that highlights the sensitivity of the Chilean market to fluctuations in fuel prices.
The new prices estimate a cost of approximately 1.7 USD per liter for both 93-octane gasoline and diesel. Additionally, the government has proposed a package of measures to mitigate the impact on the cost of living, including freezing public transport fares and providing subsidies for taxi drivers.
Authorities warn that these changes are part of a strategy to ‘safeguard public finances’ in a challenging economic environment. For more details on the economic situation, you can refer to the note on the promulgation of the bonus and CTS law.
