Kast’s Gas Price Hike Puts Financial Burden on Families Amid Energy Crisis

El Ciudadano

Original article: Del video en la bomba al bencinazo: Kast descarga la crisis sobre las familias


The gas price hike initiated by Kast not only signifies a sharp increase in fuel costs but also sends a clear political message: due to fiscal constraints, the burden of the energy crisis will fall directly on families. This announcement, made late Monday, has already sparked a strong backlash from the opposition, accusing the government of «turning its back» on the citizens.

The increase—reaching $370 per liter for 93 octane gasoline and up to $580 for diesel—will take effect this Thursday, following the activation of the Fuel Price Stabilization Mechanism (MEPCO). The Ministry of Finance justified the decision by stating that «the state of public finances prevents us from coping with the enormous impact of international oil prices.»

However, this explanation has been widely criticized by opposition sectors and former economic authorities, who argue that the «fiscal constraint» rationale has historically been used by right-wing governments to limit the role of the state and cut social spending. They point out that there are indeed fiscal tools—and recent precedents—that could mitigate such increases without directly passing the costs onto citizens.

Beyond the technical justification, the measure also reopens a political contradiction that the opposition has quickly highlighted: José Kast himself previously used fuel prices as a weapon to criticize earlier governments.

Kast’s Gas Price Hike and the Political Contradiction

During his time in opposition, Kast publicly questioned the rise in fuel prices, even recording videos at gas stations. Now, in La Moneda, his government has chosen to adjust internal prices in line with international market rates, citing a lack of fiscal space to sustain subsidies.

In this context, Frente Amplio deputy Gonzalo Winter pointed directly to this shift in position: «When he was in opposition, Kast filmed videos next to gas stations blaming Boric for the price of fuel. He omitted the influence of the Russian invasion of Ukraine. Today, his government announces a $370 increase for gasoline and $580 for diesel.»

Winter added that «there have always been external factors» and warned that the energy transition «cannot be accomplished by directly passing the immediate costs onto families.»

Financial Blow: Households Bear the Cost

The gas price hike by Kast has effects that extend beyond fuel expenses. The increase directly impacts daily transportation costs, as well as the price of goods and services, creating pressure on the cost of living.

From the opposition, Frente Amplio deputy Ignacio Achurra emphatically stated: «President Kast’s government has decided to turn its back on Chilean families and pass the costs of the global energy crisis onto them. Unprecedented, gasoline will approach $400, directly affecting the middle class.»

Achurra added that the Executive is «leaving families at the mercy of market fluctuations,» questioning the decision not to use state tools to cushion the impact.

Opposition Accuses «Passing the Adjustment»

The criticisms have not been limited to one sector. Socialist Party deputy Daniel Manouchehri described the measure as a direct blow to citizens: «Kast’s gas price hike is a slap in the face to Chileans. He decided to suddenly increase the price of gasoline, bread, and the cost of living for millions of families.»

Similarly, Frente Amplio deputy Jaime Bassa pointed to a structural dimension of the problem: «The right still believes in the trickle-down theory, but we know it never happens: the costs of tax cuts for the rich, as well as the rising cost of living, are only borne by the middle class and those who work for a living, not those who live off their rents.»

For his part, independent deputy with Communist Party affiliation Gustavo Gatica Villarroel criticized the Executive’s leadership in dealing with the crisis: «Governance is not about passing costs onto the people. It’s about anticipating, managing, and cushioning crises. Raising gasoline prices suddenly is not leadership; it’s a lack of direction.»

Fiscal Adjustment vs. Social Cost

From the government, the explanation points to a clear limitation: there would not be enough resources to maintain the level of subsidies without jeopardizing public finances. Under this logic, the use of MEPCO allows for a rapid adjustment of internal prices to the international evolution of oil. However, this definition is not neutral: it reintroduces the idea that external crises must primarily be absorbed by citizens.

The package of measures announced by the Executive—which includes a freeze on public transportation fares, support for taxis and collectives, and kerosene subsidies—aims to cushion some of the impact. However, the aids are targeted and temporary, leaving out broad sectors that will also bear the increase: private motorists who use their vehicles for work, families from peripheral communities and rural areas with low connectivity, delivery workers, small and medium enterprises with high transportation costs, and households that, without receiving direct compensation, will still face an increase in transportation, services, and basic goods.

Who Wins, Who Loses, and the Political Signal

The scenario created by the gas price hike by Kast showcases an unequal distribution of its effects.

Among those losing are households, especially from the middle class and lower-income sectors, who will see their daily expenses increase. Transportation-dependent workers and regions where mobility is more expensive will also be affected.

In contrast, the Executive has chosen to invoke fiscal constraints to justify the increase, while the announced support measures concentrate on specific sectors and do not compensate for the overall impact on households.

Ultimately, the rise in fuel prices not only makes daily life more expensive but also exposes a fundamental contradiction: the same Kast who once recorded videos at the gas station blaming others now governs by shifting the weight of a crisis he claims he cannot contain onto families.

In the end, the debate will not be just about gasoline or diesel. It will be about the type of state this government defends and an uncomfortable yet crucial question: why, every time the right speaks of fiscal constraints, does the burden end up falling on the pockets of the people?

La entrada Kast’s Gas Price Hike Puts Financial Burden on Families Amid Energy Crisis se publicó primero en El Ciudadano.

Marzo 24, 2026 • 2 horas atrás por: ElCiudadano.cl 32 visitas 1912677

🔥 Ver noticia completa en ElCiudadano.cl 🔥

Comentarios

Comentar

Noticias destacadas


Contáctanos

completa toda los campos para contáctarnos

Todos los datos son necesarios
Banner imascotas.cl