MercoPress. South Atlantic News Agency

Sharp fuel price hike in Chile triggers first protests against Kast government

Kast defended the measure as a matter of fiscal honesty. “Speaking the truth gives us peace of mind. The alternative was to push the nation deeper into debt. That ends up costing more,” he said

Chilean President José Antonio Kast's government faced its first street protests since taking office on March 11 this week, after a historic fuel price increase hit consumers and rapidly eroded public support for the far-right leader.

Finance Minister Jorge Quiroz announced Monday that gasoline prices would rise 32% and diesel 62% starting early Thursday, after the government activated an escape clause in the fuel-price stabilization mechanism (Mepco) to bring domestic prices in line with surging international crude rates linked to the conflict in the Middle East. Officials argued that public finances could no longer absorb the cost of subsidies, estimated at roughly USD 140 million per week.

The backlash was immediate. Long lines formed at gas stations ahead of the price increase, with shortages reported in several areas. On Thursday, student-led demonstrations in downtown Santiago were met with water cannons and pepper spray as marchers passed the La Moneda presidential palace. Students were also protesting a 3% cut in education spending and a new policy limiting free university education to those under 30.

On Wednesday night, Congress approved in both chambers a package of palliative measures to contain the impact on domestic fuel used for cooking and heating, along with subsidies for bus, taxi, and school transport fares. The government also froze public transit fares in the Santiago metropolitan area through December. However, a Cadem poll cited by Reuters showed Kast's approval dropping four points to 47%, with disapproval exceeding approval for the first time and 59% of respondents saying the hike could have been avoided. U.S. News & World Report

Kast defended the measure as a matter of fiscal honesty. “Speaking the truth gives us peace of mind. The alternative was to push the nation deeper into debt. That ends up costing more,” he said at a press conference. He also warned protesters not to use the metro system for demonstrations, alluding to the 2019 unrest that began in Santiago's transit network.

Former presidential candidate Evelyn Matthei, of the right-wing Independent Democratic Union, called for cuts to political spending and embassy closures to offset the impact. From the left, lawmaker Gonzalo Winter noted that Kast had filmed videos at gas stations blaming then-President Gabriel Boric for fuel prices when he was in the opposition.

Kast's austerity drive extends to other sensitive areas. The security ministry's budget was cut by roughly USD 78 million, with most of the reduction applied to police forces — a move analysts flagged as contradictory to the president's campaign promises.