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.

President José Antonio Kast led a political committee at La Moneda on Monday where he reprimanded deputy Diego Schalper (RN) for his government criticisms. The leader urged unity in the officialism, particularly regarding Mepco modifications due to fuel price hikes. Arturo Squella from Partido Republicano dismissed 'friendly fire' in the internal critiques.

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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.

The Commission for the Regulation of Energy and Gas (Creg) clarified that it has not made any decision on the remuneration of wholesale and retail margins in the distribution of liquid fuels in Colombia. The regulatory process is in the stage of technical analysis and dialogue with sector actors. Several projects have been published for public consultation since 2022.

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The Commission for Regulation of Energy and Gas (CREG) has proposed updating remuneration margins for wholesale and retail fuel distributors through regulatory projects 704 009 and 704 010 of 2025. For wholesalers, the maximum margin would be $382.75 per gallon, while for retailers it reaches $1,288.86 per gallon. These adjustments account for investments in infrastructure and operating costs.

From January 1, 2026, Colombia rolls out adjustments to gasoline and ACPM prices, with average increases of $90 and $99 per gallon, respectively. The Energy and Gas Regulation Commission (CREG) released the update, which varies by city due to transportation and distribution costs. National averages stand at $16.057 for gasoline and $10.984 for ACPM.

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Starting January 1, 2026, gasoline and diesel prices in Mexico will increase due to the annual update of the Special Tax on Production and Services (IEPS), as announced by the Secretariat of Finance and Public Credit (SHCP). This adjustment is based on the National Consumer Price Index (INPC) for November 2025, which stood at 142.645 points.

 

 

 

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