Fuel price protests in Chile entered a tense deadlock on Wednesday as transport federations rejected government freeze offers and kept their national strike going.
Negotiations Stall at La Moneda Over Freeze Timelines
La Moneda served as the epicenter of high-stakes negotiations on Wednesday as government officials and mobilised truck drivers sought an end to the national strike. Interior and Segegob Minister Claudio Alvarado led the executive team through marathon talks, offering a legislative package designed to absorb surging fuel costs.
The proposal included freezing fuel prices until February 3 of next year, rolling back the $40-per-liter fuel hike set for this week, and addressing negative specific tax declarations.
Despite these concessions, talks broke down when leaders from the northern and central-south federations refused to sign off on the timeline. Cristian Sandoval, president of the Confederación Fuerza del Norte, told the press that his group rejected the executive’s 74-day freeze proposal, demanding a full 120-day window instead. Sandoval argued that the extended period is necessary to claw back losses accumulated during months of relentless fuel inflation.
“No hay un acuerdo. Lo que sí hubo una conversación, lo que pudimos hacer es que en algunos puntos de los que nosotros traíamos como petitorio, el Gobierno aceptó.”
said Cristian Sandoval, president of the Confederación Fuerza del Norte.
While the government agreed to back a transport registry bill and discuss a per-kilometer base rate index, the lack of a fixed operational tariff floor kept the indefinite strike alive. Freddy Martínez, head of the Confederación de Camioneros del Centro Sur, acknowledged the dialogue, yet confirmed that conditions on the ground remain unchanged.
Kast Administration Bypasses Mepco Mechanism
The roots of the current paralysis stretch back to policy adjustments enacted under President José Antonio Kast. Following a sharp escalation in international oil prices driven by Middle Eastern conflicts—which pushed international diesel up by 80 percent and gasoline by 40 percent—the Kast administration opted against utilizing the traditional Fuel Price Stabilization Mechanism, known as Mepco.
Passing the full international shock directly to domestic consumers triggered significant spikes, driving inflation to its highest level in 18 months with an October CPI increase of 0.5 percent.
Independent transport factions view the administration’s initial 90-day containment package—which capped increases at $20 per liter—as wholly inadequate. André Alarcón, leader of the NO+TAG movement and a prominent voice in the mobilization, dismissed those measures as a mockery of citizens.
Alarcón and allied transport representatives continue to demand a restructuring of Mepco alongside the elimination of the specific fuel tax, as well as changes to highway concession contracts.
Adding local friction to the broader economic dispute, recent reports from El Líbero highlighted that Alarcón carries more than $10 million in unpaid electronic toll debts across multiple urban concessions and previously faced legal proceedings regarding vehicular documentation.
Alvarado Reintroduces Modified Bill to Congress
Faced with persistent disruptions, Minister Alvarado adopted an uncompromising stance following the collapse of Wednesday’s talks. Asserting that the administration had exhausted its patience, Alvarado declared that the executive would reintroduce its modified bill to Congress on Thursday. The legislation aims to roll back the controversial weekly price increases and extend specific tax recovery provisions through December 2027 at a total fiscal cost of US$750 million.
At the same time, the minister drew a sharp line between legitimate assembly and illegal obstruction. Warning that authorities would no longer tolerate the blocking of routes, Alvarado maintained that no valid excuses remain for interrupting traffic on the country’s roads now that relief measures have been tabled.
