Chilean government freezes fuel prices for three months due to truck drivers' strike
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Noticias ao Minuto
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Chilean government freezes fuel prices for three months due to truck drivers' strike

The Chilean Government implemented a freeze on fuel prices for a period of three months in response to the transport workers' stoppage, which resulted in the partial blockade of the country's main roads.

On Wednesday, the Minister of the Interior, Claudio Alvarado, informed the press at the La Moneda Palace that the decision was made to suspend the increase in fuel costs until the first days of February.

Several small and medium-sized truck driver associations began an indefinite strike on Tuesday, covering almost all regions of Chile. This protest was motivated by the continuous increase in fuel prices, which has caused considerable losses to the transport sector.

During the day, Minister Alvarado held several meetings with representatives of the transporters and announced that the adjustment in fuel prices will be reversed through a bill that will be urgently discussed in parliament next week.

The two largest entities in the sector, the National Confederation of Truck Owners and the National Confederation of Freight Transport, chose to distance themselves from the protest, although they expressed solidarity with the demands of the other groups.

Alvarado clarified that the new measures were proposed during the last round of negotiations with the leaders of the associations involved in the strike. He added that it is now up to these groups to present proposals for a vote among their bases, determining whether they will end the movement.

The minister declared that starting the following Thursday, there would be no justification to continue obstructing the free flow on highways and cities across the country.

Considering that Chile, one of the world's largest countries, lacks a railway system and relies mainly on road transport for cargo, the road blockades cause serious disruptions to supply chains.

The last major truck driver strike occurred in February 2022 but lasted only a few days.

The fuel crisis began in March when President José Antonio Kast opted not to use a state mechanism designed to mitigate the impact of international oil price fluctuations, thereby transferring the entire increase caused by the Middle East war to consumers.

Since the start of this offensive, the international price of diesel has increased by 80%, while gasoline has risen by 40%. This event triggered a domino effect in various economic segments and contributed to a drop in the popularity of the far-right head of state, who had taken office promising to revitalize the economy.

The increase in fuel costs has driven inflation to its highest level in 18 months; the consumer price index registered a growth of 0.5% in October, totaling an annual variation of 4.5%.

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Government introduces zero export duty on petrol and increases duties on diesel fuel and ATF
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Government introduces zero export duty on petrol and increases duties on diesel fuel and ATF

The Indian government has made a significant decision ahead of the Diwali festival. According to a notification from the Ministry of Finance published on the last day of October, the export duty on petrol was reduced to zero (Petrol Export Duty Zero). Simultaneously, taxes on the export of diesel fuel and aviation turbine fuel (ATF) were increased.

These changes were introduced by the Ministry of Finance via a notification issued on Saturday, October 31. It stated that the Windfall Gain Tax on the export of diesel fuel and aviation turbine fuel would be increased for two weeks. At the same time, a decision was made to cancel the levy on batches of petrol sent for export.

According to the government, these recent adjustments were made against the backdrop of constant fluctuations in the global energy market and geopolitical tensions in the Middle East.

As part of this decision, the export duty on petrol, which previously stood at 2.50 rupees per liter, was reduced to zero. The government clarified that these revised rates come into effect on October 31 and will remain valid for the next two weeks.

Furthermore, according to the official notification, the Special Additional Excise Duty (SAED) on the export of ATF was slightly increased from the previous 10.50 rupees per liter to 11 rupees per liter. The duty on the export of diesel fuel also significantly increased. The amount, including SAED and road and infrastructure levies, was raised from 8.50 rupees per liter to 11.50 rupees per liter, representing a direct tax increase of 3 rupees per liter.

According to PTI, the Ministry of Finance emphasized that despite the change in windfall gain taxes, the existing duty rates for domestic consumption of petrol and diesel fuel have not been altered. These new changes pertain exclusively to the export of petroleum products.

It is worth noting that the windfall gain tax is used by the government to levy tax on additional profits in situations where companies may earn more than usual due to exceptional market conditions. In the case of fuel, rising international prices allow refineries to earn higher profits from selling petrol and diesel fuel abroad. In such moments, the government seeks to capture some of this extra benefit through export taxes.

India first introduced the windfall gain tax on petroleum product exports in July 2022. It was repealed about two years later in December 2024. Then, in March 2026, it was reintroduced by the government amid turmoil in the international energy market and rising crude oil prices. Since then, the rates have been adjusted according to market conditions.

The government reviews these taxes every two weeks, taking into account changes in international fuel prices, as well as the profits generated by local refineries and exporters from overseas sales. By imposing export duties, the government aims to make foreign sales less attractive and encourage refineries to maintain high availability of products in the domestic market.

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