Chile relaxes its fuel price stabilization mechanism, sharply increasing oil prices

Golden Ten Data reported on March 24th that Chile's Finance Minister, José Queiroz, stated that fuel prices in the country will surge sharply this week after the government's announcement on Monday evening to relax a stabilization mechanism reflecting the impact of international oil price fluctuations. Starting March 26, the wholesale price of 93-octane gasoline will rise by approximately 44%, which is an increase of 370 pesos per liter (about $0.41), while the price of 97-octane gasoline will increase by 41%. The price of diesel, widely used in heavy transport, will go up by about 54%, that is, 580 pesos per liter. Chile has implemented a series of targeted measures to mitigate the impact on certain sectors, including providing taxi drivers with monthly cash subsidies; freezing public transport fares in the capital, Santiago, and offering equivalent support for regional transport; further reducing kerosene prices for heating in low-income households; and offering low-interest loans to taxi drivers for the transition to electric vehicles.