Chilean Gasoline Prices to See 'Important Drop' After U.S.-Iran Deal

Chilean gasoline and diesel prices are poised for a significant decrease this week, thanks to the recent agreement between the United States and Iran, according to the Minister of Finance, Jorge Quiroz. This anticipated reduction is seen as welcome news for the country, which had previously faced steep price hikes.

Quiroz announced that gasoline prices are expected to fall by about $0.11 (100 Chilean pesos) per liter, while diesel prices will likely decrease by approximately $0.12 (110 Chilean pesos) per liter starting Thursday. He indicated that further price reductions could follow if the trend holds, offering relief to consumers.

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This is very good news for Chile. We said that when the war ends and prices begin to fall, we will transmit the decrease with the same emphasis and the same speed, and this week there will be an important decrease.

Earlier in the year, the government of President José Antonio Kast implemented substantial increases in fuel prices. These hikes, amounting to $0.41 per liter for gasoline and $0.64 per liter for diesel, were a direct consequence of rising global oil prices driven by the war in the Persian Gulf. At the time, Quiroz explained that the government lacked sufficient fiscal certainty to absorb these international price increases, leading to the pass-through to Chilean consumers.

The earlier price increases generated considerable backlash from various political sectors and productive groups, including agricultural owners and transporters. While the government introduced measures to mitigate the impact, such as aid for land transport and capital city users, these were widely considered insufficient.

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We would have preferred not to pass on the increase in international prices to Chile, but we had to do it because we do not have sufficient resources or fiscal certainty to do so.