Original article: «Díganles que ya existe y que se llama Mepco»: Duras críticas al Gobierno tras anuncio de «nuevo mecanismo» para contener alza de combustibles
Criticism Mounts as Chilean Government Introduces ‘New Mechanism’ to Control Fuel Price Hikes
The «Fuel Brake Law» is the title of the initiative announced on Monday, November 9th, by President José A. Kast’s administration. Its aim is to ensure that no potential increase exceeds $20 per liter for diesel and gasoline over the next 90 days.
Quickly, Minister Quiroz clarified that while fiscal savings will be used to curb price rises, the country «cannot completely disconnect from international prices.»
As La Moneda sought to explain and promote this initiative as «a concrete measure to protect family budgets,» public reactions turned Mepco into a trending topic for obvious reasons: the Kast-Quiroz project is nearly identical to a price stabilization mechanism.
From Congress, Deputy Gonzalo Winter (FA) described the announcement as a «vicious cycle: the government creates a problem, hides while the situation becomes unsustainable, and when it finally announces a measure to contain it, presents it to the nation as if it were resolving an external issue. This happens again and again.»
«They tried to make the country believe that suspending Mepco was a mature, necessary, and inevitable decision. Now, in light of the consequences of that decision, they announce measures to contain the same increases they contributed to generating. At the end of the day, it becomes evident that the government didn’t know what it was doing,» Winter added.
“It seems the government’s great solution to the problem it caused is to restore what already existed,” commented Deputy Jaime Araya (IND), who sarcastically remarked that «President Kast and Minister Quiroz have just discovered the wheel.»
There were also challenges in the Senate. Senator Diego Ibáñez (FA) stated that «eight months later, and in light of the sixth increase in fuel prices, President Kast finally realizes that it’s urgent to use the State (Mepco) to alleviate inflation.»
The legislator recalled that «the gas price surge on March 26 raised the gasoline price by more than 300 pesos per liter, while diesel has already seen an increase of over 600 pesos per liter. The cost of living for families has risen, and sales at local markets have fallen by 60%. It was irresponsible to wait and too late for the measure, but it was about time.»
For Senator Iván Flores (DC), the government “arrived late, no doubt, after people have suffered from the successive rises in fuel prices and the IPC.”
«I hope what has been announced isn’t just a one-time event and that Mepco gets reactivated,» the parliamentarian added.
We will keep you updated.
