MercoPress. South Atlantic News Agency

Chilean government announces biggest fuel price hike in months

Filling the tank four times a month for an average Chilean family will cost 244 US dollars.

Chile’s government has decided to “un-freeze” the increase of the gasoline prices considering that the value of both oil and the US dollar is growing all around the world.
By law, on March 25 the transitory price reduction to the specific oil tax must come to an end. The decree was passed last year to help the local economy given the financial crisis that affected many countries.

According to the state-owned petroleum company ENAP, the price increase will take place “gradually,” beginning this Thursday with a US$0.02 (CLP $12) increase and ending on Friday with a US$0.11 (CLP $55), for a total increase of about US$0.13 (CLP $67).

In practical terms, a family that has to put gasoline in their car four times a month (approximately 50 litres) will soon have to pay about US$ 243.74 (CLP $130.000) instead of US$ 217.50 (CLP $116.000).

The news does not come at a good time for the Chileans in view of the current situation of the nation. Many drivers are literally rushing to local gas stations to full their tanks before the end of the week. At the same time, bus and subway fares will soon increase, along with a number of products that use oil as a raw material.

Finance Minister Felipe Larraín said that despite the controversy that the decision has provoked, it is a necessary action since the country needs that money to contribute to the reconstruction process.

Still, the Chilean Association of Drivers is asking the government to stop the petrol price increase, claiming that the country’s middle class will be the most affected. Its president, Vicente Faúndez, said that if authorities refuse to listen their demands there will be public demonstrations.

By Beatriz León M. – Santiago Times