Chile announces controversial change in fuel price calculation due to war
Jose Antonio Kast comes to the presidency with the promise of an 'emergency' government and a tough hand. Photo: Galo Paguay / AFP
TL;DR
- Chile modified the MEPCO to deal with rising oil prices due to the Middle East conflict.
- The change extends the international price calculation period from two to four weeks.
- This will reduce subsidies and gradually pass on international oil price increases to consumers.
- Experts warn the modification will negatively impact consumers' finances.
- The government argues the adjustment aims to contain fiscal impact and avoid government debt.
- The decision was discussed in a government committee, with concerns raised about potential popular protests.