Historic fuel price hike comes into effect in Chile, along with Kast's first law
Chile faces a historic fuel price increase under José Antonio Kast's government, which is already generating protests and pressure on the cost of living
TL;DR
- Gasoline prices in Chile increased by 32%, and diesel by 62%, effective Thursday.
- This marks the second-largest fuel price increase in Chilean history.
- A new law was passed by the Chilean Congress to implement temporary measures to contain fuel prices and mitigate their impact.
- Measures include bonuses for taxis, colectivos, and school transport, and a reduction in the VAT tax burden for non-transport SMEs.
- The government will freeze public transport prices in the Metropolitan region until the end of the year.
- The diesel price hike significantly affects the transport sector, particularly long-haul trucking, which distributes 98% of goods.
- Protests and long queues at gas stations have been reported following the announcement.
- The Minister of Energy has dismissed concerns about fuel shortages, despite isolated incidents.