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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Chile's Finance Minister Jorge Quiroz stated the government is reviewing changes to the Fuel Price Stabilization Mechanism (Mepco) due to high fiscal costs from oil price rises tied to the Middle East conflict. He previewed a bill to fund the Petroleum Price Stabilization Fund (Fepp) and prevent paraffin price hikes. Opposition lawmakers criticized it as passing war-related costs to families.

The Automatic Fuel Pricing Committee raised prices for all fuel categories by 15 to 22 percent at 3 a.m. on Tuesday. This sudden mid-week decision breaks the normal quarterly review pattern, with increases typically issued at the week's end. It followed a meeting where Prime Minister Mostafa Madbuly discussed options with ministers, including Petroleum Minister Karim Badawy, to address a potential energy crisis if the US-Israeli war on Iran persists.

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Prime Minister Sébastien Lecornu warned the Council of Ministers on Wednesday against measures on fuel VAT described as « as demagogic as they are useless ». This comes as oil prices rise over 5% due to the war in the Middle East, already affecting fishermen, farmers, and truckers. He also requested proposals to protect consumers from energy price volatility.

Fuel prices in Brazil rose for the second consecutive week, according to ANP data released on March 13, 2026. Diesel saw an 11.8% increase, while gasoline rose 2.5%, reflecting the impacts of the war in Iran on international oil prices.

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The Colombian government holds a Council of Ministers in Montería to coordinate responses to floods in Córdoba, triggered by heavy rains and discharges from the Urrá reservoir. Urrá's board appointed Enrique Kerguelen Méndez as interim president after Julián Acevedo's resignation, amid criticism from President Gustavo Petro. Proposals include a new economic emergency and use of unspent royalties to address the crisis.

 

 

 

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