Chile announces historic rise in fuel after fiscal adjustment

Published at: 25/03/2026 09:17 AM

The government of José Antonio Kast in Chile announced an increase of close to $0.50 per liter in fuel. The measure responds to a severe adjustment in the state's price stabilization mechanism, seeking to curb public spending in the face of high volatility in the international market.

This decision comes in a context of energy crisis, where oil rose from $70 to $110 due to the war between the United States and Israel against Iran.

Currently, the state subsidy represents a weekly cost of 140 million dollars, an unsustainable figure for the plan to reduce the fiscal deficit.

Starting this Thursday, gasoline will reach $1.7 per liter, while diesel will equal that value. To mitigate the impact on the cost of living, the Executive will freeze public transport fares and grant a monthly bonus of $110 to taxi drivers for the next semester.

With this adjustment, the new administration seeks to correct the fiscal deficit of 3.6% of GDP inherited from 2025. The current government prioritizes the consolidation of public accounts in the face of the drop in revenues recorded during the previous period.

Mazo News Team