March 26 (UPI) -- Chile on Thursday implemented an unprecedented increase in fuel prices, giving the country some of the highest costs in the region and adding upward pressure on inflation.
The hike follows an energy crisis linked to the war in the Middle East and a sharp adjustment to a state subsidy mechanism that cushions international price volatility. Gasoline prices rose by about 32% and diesel by 58%, equivalent to an increase of nearly 50 cents per liter.
According to consulting firm GlobalPetrolPrices, which tracks fuel costs in 170 countries, the increase places Chile among the most expensive markets in Latin America, surpassed only by Uruguay and above the global average, local outlet Emol reported.
Ahead of the price adjustment, long lines formed Wednesday at gas stations in Santiago as drivers rushed to fill their tanks, CNN Chile reported.
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