Chile Fuel Relief: Kast Extends US$103 Monthly Aid to Taxis as Truckers Rule Out Strike
ECONOMY · CHILE
Key Facts
- —The country Chile imports most of its fuel, so world oil prices reach its pumps fast. A weekly mechanism, MEPCO, smooths the swings by adjusting the fuel tax.
- —What happened On 29 September President José Antonio Kast signed a bill extending a 100,000-peso (about US$103) monthly fuel aid to December 2026, El Mostrador and Chilevisión reported.
- —Who is involved Owners of taxis, shared taxis and school transport, plus small-scale fishers. Truckers are not covered; their confederations met the Economy Ministry on 30 September.
- —What it means for you Cab and school-run fares face less pressure until December. Goods moved by diesel lorry, and intercity buses, whose fares rose 18% (Bus association, 29 September), stay exposed.
- —Still open Congress must approve the bill. Truckers want a legal tool to pass diesel costs on to freight clients; talks resume next week.
Chile fuel relief for owners of taxis, shared taxis and school transport will run until December, if Congress agrees. President José Antonio Kast signed the bill on Tuesday 29 September, with diesel near record highs.
Truckers, who are not covered, said on Wednesday they will not strike for now. After meeting the Economy Ministry, their leaders said the government is drafting a tool to pass diesel costs on to freight clients.
What the bill extends
The bill prolongs payments under Law 21.811, the fuel aid created after the March price shock. Each beneficiary receives up to 100,000 pesos (about US$103) a month, at 967 pesos per US dollar on 30 September.
The money goes into an electronic fuel wallet linked to the CuentaRUT account at the state bank BancoEstado. It can only be spent on fuel, Chilevisión reported.
Payments were first set for up to six months, from April to September 2026. The extension runs to the end of December and also covers small-scale fishers, El Mostrador reported.
The same bill authorises fresh capital for Fogape, a state fund that guarantees loans to small firms. El Mostrador put the injection at up to 300 billion pesos (about US$310 million), a figure not independently confirmed.
Why the government is acting again
Kast tied the extension to the Middle East conflict, which has pushed oil from about US$70 to around US$100 a barrel. “We thought the war would last a short time,” he said at the signing, El Mostrador reported.
The pressure dates from March, when the government used an emergency clause in MEPCO, the fuel price stabilisation mechanism. Wholesale diesel then rose about 54% in a single step, as reported in Chile Fuel Prices to Jump 54% as Kast Ends Subsidy.
MEPCO normally spreads world price swings over small weekly steps by adjusting the specific fuel tax. The state oil company ENAP publishes each week’s expected changes on Wednesday, and they apply from Thursday.
Truckers step back from a strike
On 28 September the truckers had given the Finance Ministry 48 hours to answer four demands, Radio Bío-Bío reported. Their leaders said grassroots members would decide on any national stoppage.
On Wednesday they met Economy undersecretary Karlfranz Koehler and ruled out a strike, Bío-Bío and ADN Radio reported. “We do not give ultimatums,” said Sergio Pérez, head of the National Cargo Transport Confederation (CNTC).
Their main demand is a legal fuel surcharge that passes diesel changes automatically into freight contracts. Juan Araya of the truck owners’ confederation, CNDC, said its members move 93% of Chile’s cargo.
They also want MEPCO applied in full for diesel. Pérez said a “negative specific tax” now costs some hauliers nearly 100 pesos (about US$0.10) a litre, a figure not independently confirmed.
Who gets Chile fuel relief, and who does not
The relief is narrow by design, and some costs are already reaching passengers. The intercity bus association said fares had risen 18% and services had been cut by 10% to 12%, Bío-Bío reported.
Taxi drivers welcomed the extension but asked Congress to recalculate the amounts. Héctor Sandoval of the taxi and colectivo confederation said the situation had changed since the payments were first set.
The government argues that fiscal restraint lets it cushion the shock without new debt. Finance Minister Jorge Quiroz said ENAP’s update on Wednesday would stay in line with recent weeks, Bío-Bío reported.
The aid sits alongside a wider employment push announced on 28 September. Background: Chile’s Kast Unveils Emergency Jobs Plan Promising Over 100,000 Jobs.
What Is Not Yet Known
Congress has not yet voted on the extension, and the reports reviewed give no total cost for the three extra months. The size of the Fogape injection rests on a single report.
The design of any freight cost-transfer tool is still unknown. The truckers meet the undersecretary again next week, and ENAP’s figures for Thursday 1 October were due on Wednesday afternoon.
Sources: El Mostrador (29 Sep 2026); Chilevisión (29 Sep 2026); Radio Bío-Bío (29 Sep, 28 Sep, 30 Sep, 30 Sep); ADN Radio (30 Sep 2026). Exchange rate: open.er-api, 30 Sep 2026.
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