Fuel increases have been notorious in recent times, and this trend continues with a current price of USD 118.8 per barrel, reflecting an increase of 4.7% over last month. This has been reflected in constant increases in the price of gasoline at national level, the last one this week being CLP 12.3, where in certain areas of the RM the 93 octane gasoline exceeds CLP 1,140.

What are the factors that influence fuel price increases in our country?

There are several points to highlight: the cost of oil production (accompanied by high demand), the transfer to Chile (especially with the rise in maritime freight costs after the pandemic), the value of the dollar (surpassing CLP 900 this Friday) and the Fuel Price Stabilization Mechanism (Mepco). 

Below is a graph showing the purchasable values of USD/gallon for different countries:

It is worth noting the different alternatives that have been developed over time to replace traditional fuel, such as, for example, vehicles powered by electricity. There is even a Chilean startup called EcoFuels, which has developed fuel based on contaminated or used plastics. However, it is not yet suitable for vehicles. 

With this trend, it is worth questioning whether the car is the best means of transportation today. It is no coincidence that we see more and more people going to the office or picking up their children from school on bicycles or electric scooters. 

Pablo Garcés

AGF Team