Between 2020 and 2022, the value of 1 liter of oil (vegetable or wonder) went from approximately $1,700 to more than $3,500 in certain areas of Chile. The increase in its value is due, among other things, to the conflict between Russia and Ukraine, added to the general inflationary phenomenon and the counter-cyclical measures of the State.
The price of oil in Chile exceeded $3,000 a literan increase that reflects the economic phenomenon of inflation that affects our country and the world and that February reached 7.8%, according to information from the Central Bank.
Through social networks, consumers have shown the remarkable advance in the price of this productwhich had an increase of almost 100% in the last 24 months.
I thought it was a joke. What we are experiencing is crazy. pic.twitter.com/J0OLU8LJCX
– Pao Avila (@pormipaisdigno) April 4, 2022
How much has the price of oil risen in Chile?
Oil is an almost essential ingredient in cooking. Its use ranges from the preparation of basic dishes (fries, vegetables, etc.), to pastries and bread.
The price of oil in Chile, jump from approximately $1,700 in 2020, to more than $3,000, even reaching $3,999in April 2022.
– Carolina Riquelme (@carolinarique31) April 5, 2022
vegetable oil reached an increase of almost 70%according to Office of Agricultural Studies and Policies (ODEPA). While the price of wonder oil rose to almost 90%.
Why did the price of oil rise in Chile?
Carolina EricesCommercial Engineer and academic from the University of Valparaíso, told the media The Fifth Undertakesthat the price of vegetable oil had the highest historical rise in terms of its valueaccording to the Food and Agriculture Organization of the United Nations (FAO).
According to the professional repercussions of the conflict between Russia and Ukraine, would be responsible for the increase in the price of oil in Chile. “The sunflower oil embargo, whose main producers are Russia and Ukrainehave also revalued the price of (vegetable) olive oil”, he explained.
On the other hand, Erices noted that the covid-19 pandemic, the loss of labor, the closure of borders, and the rise in the value of fuelare a series of factors that began to generate a rise in oil prices.
Finally, the adoption of countercyclical measuressuch as fiscal stimulus packages (bonds, aid, IFE, among others), bring with them inflationary effects.