CHILE · STATE OIL FIRM
Key Facts
- The country Chile is a copper-rich South American economy that imports more than 95% of the oil it uses, so world prices reach its pumps fast.
- What happened Diesel in Chile rises 91.5 pesos a litre (about US$0.09) from Thursday, 22 October, and petrol rises 41.3 pesos (about US$0.04).
- The oil price Brent crude, the global benchmark, traded near US$111.74 a barrel on the morning of 22 October, with a high of US$112.60.
- The profit ENAP earned US$579 million in the first half of 2026, up 82% from US$318 million a year earlier.
- The state bill Finance Minister Jorge Quiroz said on 21 October that the state subsidises diesel by about 200 pesos a litre (about US$0.21).
- Spending Quiroz said the government has spent 300 billion pesos (about US$308 million) in three weeks to slow the rises.
- Power Index Chile ranks 3rd of 14 in The Rio Times Latin America Power Index, with 63.6 points (October 2026 edition).
Chile’s state oil firm ENAP communicated on 21 October that diesel will rise 91.5 pesos a litre (about US$0.09) on Thursday, 22 October. On that morning Brent crude, the global oil benchmark, traded near US$111.74 a barrel, according to La Tercera.
Short for Empresa Nacional del Petróleo, ENAP earned US$579 million in the first half of 2026, while the government pays to cushion the pump. For US readers, the story shows how a state-owned refiner and its owner handle an oil shock above US$110.
What ENAP Reported on 21 October
The company communicated its new reference fuel prices on Wednesday, 21 October, lifting diesel by 91.5 pesos a litre (about US$0.09). Petrol rose by an average of 41.3 pesos (about US$0.04), and the new prices apply from Thursday, 22 October.
La Tercera, a Santiago daily, puts the diesel average in Santiago’s Metropolitan Region at 1,558 pesos a litre (about US$1.60), the highest on record. Petrol of 93 octane stands at 1,527 pesos (about US$1.57), just under its record of 1,546 pesos (about US$1.59).
How the Mepco Price Cushion Works
Mepco is Chile’s fuel price stabilisation mechanism, created by Law 20,765 in July 2014, according to the Finance Ministry. It works through increases and cuts to the specific fuel tax, which softens swings in the pump price.
La Tercera says the Kast government changed Mepco in March for fiscal reasons, passing world oil rises more directly to local prices. Chile’s truckers dropped a strike threat after the latest rise and defended the government’s handling of Mepco.
Live Market IntelligenceChile — Live Market Board
Rio Times · Live Market Intelligence
Chile — Live Market Board
-2.18%
204,116.29
-1.15%
70,249.54
+1.43%
10,746.44
-2.18%
3,017,221
—
2,529.36
-1.21%
59,561.23
-4.00%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IPSA | 10,746.44 | -2.18% | — | 10,985.55 | 11,210 | 10,984 | 1,513,213,483 |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| SQM-B | 65,305 | -0.84% | +49.03% | 65,860 | 66,949 | 64,978 | 76,539 |
| COPEC | 5,964 | -1.09% | -11.70% | 6,030 | 6,100 | 5,960 | 634,331 |
| BSANTANDER | 78.37 | -2.28% | +35.94% | 80.20 | 81.69 | 78.34 | 36,288,711 |
| FALABELLA | 6,334 | -1.48% | +23.28% | 6,429 | 6,450 | 6,300 | 26,085,814 |
| ENELAM | 87.09 | +0.10% | -10.13% | 87.00 | 87.40 | 86.50 | 13,106,417 |
| CENCOSUD | 1,946 | -2.19% | -35.30% | 1,990 | 2,010 | 1,945 | 966,528 |
| CMPC | 1,020 | -1.96% | -29.10% | 1,040 | 1,050 | 1,015 | 3,526,677 |
| BANCO CHILE | 184.96 | -1.01% | +32.87% | 186.85 | 189.99 | 184.33 | 18,101,240 |
| LATAM AIR | 24.08 | -1.11% | +16.61% | 24.35 | 24.59 | 23.88 | 573,612,753 |
| SOUTHERN COPPER | 193.97 | -0.26% | +104.01% | 194.48 | 199.36 | 192.59 | 367,102 |
What the State Is Paying for Diesel
Finance Minister Jorge Quiroz said on 21 October that the state subsidises diesel by about 200 pesos a litre (about US$0.21). He added that conservative President José Antonio Kast’s government has spent 300 billion pesos (about US$308 million) in three weeks, according to T13.
Quiroz blamed the war in the Middle East, the war in Russia and the destruction of refineries around the world. The government is doing everything fiscally possible, he said, to keep the increases gradual.
The Profit and Debt Behind ENAP
ENAP earned US$579 million in the first half of 2026, up 82% from US$318 million a year earlier. Its core earnings, known as EBITDA, reached US$974 million, up 43% from US$682 million.
The company credits higher sales of its own production and stronger international refining margins. Its operations in Ecuador, Egypt, logistics, refineries and Magallanes drove the result.
Why the State Wants the Firm’s Cash
The Finance Ministry set a 2026 dividend withdrawal of US$593.5 million, and the firm had paid about US$100 million in taxes by then. At the April shareholders’ meeting Quiroz asked that 70% of the company’s profits go to the state, according to BioBioChile.
In July, Fitch Ratings, a credit rating agency, kept ENAP at A- internationally and AAA locally and raised its stand-alone profile from b to bb-. ENAP also agreed on 19 October to buy Pluspetrol’s Ecuadorian oil business for US$207 million, as we reported.
What It Means for US Readers
Brent, the benchmark behind Chile’s import costs, rose on reports of planned new US strikes on Iran, so US policy feeds into Santiago pump prices. Our report on the 22 October price rise has the full list of fuels.
The state says it is spending about US$308 million in three weeks, which investors in Chilean debt may watch as a fiscal factor. Fitch’s A- rating dates from July, before the latest oil jump.
What Is Not Known
It is not known how long the government can keep paying for the diesel cushion, or whether it will change Mepco again. It is also unclear how the high oil price will change the company’s results in the second half of the year.
Actual prices at each station may differ from the Metropolitan Region averages. Economist Juan Ortiz of the OCEC-UDP research centre expects another rise around mid-November, according to La Tercera.
More: Chile news in English, every day from The Rio Times.
Frequently Asked Questions
What is ENAP?
It is Empresa Nacional del Petróleo, Chile’s state-owned oil company, which refines crude and also produces oil abroad. Its operations in Ecuador, Egypt, logistics, refineries and Magallanes drove the first-half result.
Who sets fuel prices in Chile?
ENAP communicates weekly reference prices for fuels, and the new ones apply from Thursday, 22 October. Mepco, run by the Finance Ministry, adjusts the specific fuel tax to soften the swings.
What is Mepco?
Mepco is the state mechanism that stabilises fuel prices through increases and cuts to the specific fuel tax. Quiroz says the government now subsidises diesel by about 200 pesos a litre (about US$0.21).
How much did ENAP earn in 2026?
The company earned US$579 million in the first half of 2026, up 82% from US$318 million. Its EBITDA was US$974 million.
How high is Brent crude?
Brent traded near US$111.74 a barrel on the morning of 22 October, with an intraday high of US$112.60. La Tercera links the rise to fears of new strikes on Iran.
Sources: ENAP, Informe semanal de precios (site did not load; figures taken from La Tercera), 21 October 2026; La Tercera, El Brent se encumbra sobre los US$ 112 un día después de que la ENAP reportara nueva alza, 22 October 2026; La Tercera, Tras nueva alza, bencinas queda ad portas de máximo histórico y el diésel marca nuevo peak, 22 October 2026; T13, Quiroz anticipa nueva alza de combustibles, 21 October 2026; CNN Chile, Enap registra utilidades por US$ 579 millones a junio, 30 July 2026; BioBioChile, Gobierno informa a Enap que 70% de sus utilidades se irán a billetera fiscal, 29 April 2026; Ministerio de Hacienda, MEPCO, 22 October 2026; Reporte Minero, Fitch Ratings ratifica clasificación de Enap, 8 July 2026; open.er-api.com exchange rates, 22 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief