Chile's government announced it will hike gasoline prices by 41% and diesel prices by 54% effective March 26, La Tercera reported on March 24.

Chile is especially exposed to oil price shocks, given that it imports nearly all the oil and gas it consumes. The Kast administration estimates that the existing price control mechanism would cost the state about $140 million per week under current oil prices. The Chilean government also announced some measures to cushion the price spike, such as subsidies for taxi drivers and public transport fare freezes. The announcement followed a global surge in oil prices stemming from the conflict in the Middle East.