Tuesday, 26 February 2013 17:52
Finance Minister implements measures to ease the pain of prices at the pumps.
Finance Minister Felipe Larraín confirmed Tuesday that the government would significantly drop the gas tax this week via its Sipco
mechanism, which reduces fuel taxes when gas prices spike strongly.
The announcement will come as welcome news to Chilean motorists, who have seen the price of regular 93-octane fuel rise nearly 9.9 percent from US$5.41 per gallon in November to US$5.95 per gallon last week. The Sipco requires gas prices to rise 10 percent over a period of one month to a year in order for the tax rebate to kick in.
“The current situation of the international fuel market is set to cause a price increase of around 18 pesos [per liter, or 15 cents per gallon,] next week,” Larraín told the press. “This is not going to happen. The Sipco is going to work strongly this week.”
By reducing the tax on fuel, the government will save gasoline consumers 14 pesos per liter (11 cents per gallon). With Sipco in action, gasoline prices are predicted to rise about four pesos this week, while the price of diesel will see an almost negligible rise.Login to read more.