Chile Fuel Prices Rise: Gasoline & Diesel Up, Kerosene Down – March 5th Update

Chilean state-owned oil company, Enap, announced significant price increases for gasoline and diesel fuel this week, effective Thursday, March 5th, 2026. The adjustments reflect global market pressures stemming from ongoing geopolitical tensions in the Middle East, specifically the conflict involving the United States, Israel, and Iran. These price hikes will impact consumers across Chile, adding to existing cost-of-living concerns.

Fuel Price Adjustments

According to Enap’s report, gasoline 93 octane will increase by 18.8 Chilean pesos per liter, whereas gasoline 97 octane will observe a larger increase of 20.9 pesos per liter. Diesel fuel will rise by 19.3 pesos per liter. Notably, kerosene – commonly used for heating and aviation – will buck the trend, decreasing by 27.9 pesos per liter. Liquefied Petroleum Gas (GLP) for vehicular employ will also become more expensive, increasing by 11.8 pesos per liter.

These changes are directly tied to import costs from the Gulf Coast of the United States, transportation expenses, and the application of existing stabilization mechanisms, as outlined by Enap. The company emphasizes that it does not set or regulate fuel prices in Chile. rather, it commercializes hydrocarbon derivatives to distributing companies, who then determine the final price for consumers. Enap’s full statement can be found on BioBioChile.

Geopolitical Impact and Global Oil Supply

The price increases are largely attributed to the escalating conflict in the Middle East, which has led to a blockade of the Strait of Ormuz. This critical maritime route handles approximately 20% of global crude oil transit, and its disruption is creating significant supply concerns. Both West Texas Intermediate (WTI) and Brent crude oil prices are under pressure. Some projections suggest Brent could potentially rise to US$140 per barrel in a worst-case scenario, though this remains unconfirmed.

Chile, as a country heavily reliant on oil imports, is particularly vulnerable to these global market fluctuations. ADN Radio reports that the current situation is marked by volatility in the international crude oil market.

Impact on Chilean Consumers and Sectors

The price hikes will directly affect Chilean consumers, increasing transportation costs for individuals and businesses alike. The impact will be felt across various sectors, including logistics, agriculture, and tourism. For example, trucking companies will likely pass on increased fuel costs to their clients, potentially leading to higher prices for goods. Similarly, farmers relying on diesel-powered machinery will face increased operational expenses.

The GLP increase will impact households and businesses that utilize gas for heating and cooking. While the kerosene price decrease offers some relief, its overall impact is likely to be less significant given its comparatively smaller usage volume. The price adjustments also come at a time when Chile is already grappling with inflation, adding further strain on household budgets.

Enap’s Role and Market Dynamics

It’s critical to understand that Enap operates within a specific market framework. While the company doesn’t regulate prices, it plays a crucial role in importing and distributing fuel. The final price consumers pay is determined by the individual distributors, who factor in their own operating costs and profit margins. Enap’s price estimations serve as a benchmark for these distributors.

The company’s pricing calculations are based on import values from the US Gulf Coast, transportation costs, and the mechanisms established by the Market Fuel Price Stabilization Mechanism (Mepco) and the Fuel Price Stabilization Fund (Fepp). These mechanisms are designed to mitigate the impact of international price fluctuations on the domestic market, but their effectiveness is limited in the face of significant global events.

Historical Context and Price Trends

Reviewing Enap’s historical price parity table reveals fluctuations in fuel costs over the past several months. Data from February 26th, 2026, shows gasoline 93 at US$609.26 per cubic meter and gasoline 97 at US$657.11 per cubic meter. Diesel was priced at US$664.54 per cubic meter. These figures provide a baseline for understanding the current price increases and their magnitude.

The recent surge in prices is particularly noteworthy given the relative stability observed in the earlier part of February. The conflict in the Middle East appears to be the primary catalyst for the current upward trend, highlighting the interconnectedness of global energy markets.

Looking Ahead

The situation remains fluid and dependent on the evolution of the geopolitical landscape. Continued escalation of the conflict in the Middle East could lead to further disruptions in oil supply and potentially even higher prices. Conversely, a de-escalation of tensions could stabilize the market and potentially lead to price decreases.

Chilean authorities will be closely monitoring the situation and assessing the need for additional measures to mitigate the impact on consumers and businesses. The next Enap price report, scheduled for release in mid-March, will provide further insights into the market outlook. Distributors will then adjust their prices accordingly, and consumers should anticipate continued volatility in the short term.