Mayors criticize fuel price hikes during La Moneda meeting

In response to the government's recent announcement of significant fuel price increases, leaders from Chile's three major municipal associations met Tuesday at La Moneda to voice criticisms and demand a social agenda. Meanwhile, 26 opposition mayors issued a strong statement highlighting impacts on residents, as the hikes of $370 for gasoline and $580 for diesel take effect Thursday.

Following Finance Minister Jorge Quiroz's Monday announcement of fuel price hikes tied to surging international oil prices from the ongoing Iran conflict, leaders from the Chilean Association of Municipalities (ACHM), the Association of Municipalities of Chile (AMUCH), and the Association of Rural Municipalities (AMUR) met Tuesday, March 24, at La Moneda with government advisor Alejandro Irarrázaval. They urged a broader social response beyond economic measures, with ACHM president Gustavo Alessandri calling for an urgent working table with mayors and the government to deliver quick solutions for residents. A group of 26 opposition mayors, including Karina Delfino (Quinta Normal), Tomás Vodanovic (Maipú), Claudia Pizarro (La Pintana), Matías Toledo (Puente Alto), and Claudio Castro (Renca), released a statement expressing 'deep concern' over effects on daily lives and municipalities, criticizing policies that burden working families. Claudio Castro noted on social media the cumulative challenges of pandemic, social unrest, climate, and security crises. Amid panic buying, communes like Lo Barnechea and Las Condes implemented contingency plans with police coordination. Felipe Alessandri (Lo Barnechea) called for calm, confirming no shortages, while Copec assured sufficient stock.

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Chilean gas station showing historic fuel price hikes after government decree on Mepco, with queues of drivers and La Moneda palace in background.
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Government neutralizes Mepco and drives fuel prices to historic highs

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José Antonio Kast's government issued decrees tweaking the Mepco, allowing historic gasoline and diesel price hikes starting March 26. The move addresses surging oil prices from the Iran war and fiscal tightness, with relief for paraffin and transporters. Congress approved the bill after negotiations exempting SMEs from higher taxes.

Finance Minister Jorge Quiroz announced increases of $370 per liter in 93-octane gasoline and $580 in diesel, effective from Thursday, March 26, due to the international oil price surge from the Iran conflict. The government also activated palliative measures, including freezing Transantiago fares until year-end and subsidies for taxi drivers. Quiroz justified the moves as necessary to align local prices with international levels and safeguard public finances.

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Following the neutralization of the Fuel Price Stabilization Mechanism (Mepco), President José Antonio Kast's government has promulgated a law providing relief measures against historic fuel price surges triggered by the war in Iran. Finance Minister Jorge Quiroz emphasized fiscal responsibility, detailing bonuses for transporters and paraffin price cuts.

A student march called by ACES, Confech and other groups rejected the measures of José Antonio Kast's government on Thursday, such as limits on free education and fuel price hikes. The demonstration in Santiago led to clashes with Carabineros, who used water cannons and tear gas.

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The National Petroleum Company reported minor fuel price changes on Wednesday that take effect Thursday, May 7. 93-octane gasoline rises 0.1 pesos per liter and diesel falls 47.3 pesos, while kerosene stays the same.

Following initial DOE warnings earlier this week, local oil retailers in the Philippines will implement double-digit fuel price increases of P17 to P24 per liter starting March 10, amid ongoing Middle East tensions. President Marcos plans to seek emergency powers to cut excise taxes.

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Chile's National Petroleum Company (Enap) released its weekly price report, showing rises in gasoline and diesel prices from Thursday, April 16. 93-octane gasoline will increase by $20.2 per liter and 97-octane by $22.3, while diesel rises $36.4. The Mepco mechanism cushioned the hike, according to the undersecretary of Finance.

 

 

 

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