SANTIAGO — Fuel prices in Chile are rising sharply from Thursday, September adding pressure on consumers just days before the country’s Fiestas Patrias celebrations.

The price of gasoline is increasing by 35 Chilean pesos per litre, while diesel is rising by 89 pesos per litre, according to Chile’s state-owned oil company ENAP. The new prices will remain in effect for three weeks until the next scheduled adjustment.

The increase comes as international crude prices remain above $100 a barrel, driven by disruptions linked to the escalating conflict in the Middle East. Chile, which relies heavily on imported energy, is particularly exposed to movements in international oil markets.

Finance Minister Jorge Quiroz said Chile is in a stronger fiscal position than during the previous major fuel-price shock in March. He attributed the latest increase primarily to the international oil market and geopolitical developments.

The timing is significant because Chile’s Fiestas Patrias are celebrated on September 18 and 19, when travel traditionally increases across the country. Higher fuel costs could therefore raise transportation expenses for households and businesses.

The diesel increase is particularly important for the transport sector because diesel is widely used by freight operators and passenger transportation companies. Higher operating costs could eventually feed into prices for goods and services.

The latest fuel adjustment is also occurring against a challenging economic backdrop. Chile’s central bank recently lowered its 2026 growth forecast to between 0.25% and 0.75%, citing weaker domestic demand, adverse weather effects and lower mining production.

At the same time, the central bank has kept its benchmark interest rate at 4.5%, while continuing to monitor inflation risks arising from higher fuel costs and international financial conditions.

The combination of higher energy prices and weaker growth could create a difficult policy environment for Chile. Authorities will need to balance the impact of rising costs on households with the need to maintain economic and price stability.

For Chilean consumers, however, the immediate impact will be felt most directly at petrol stations, with the new fuel prices taking effect just as holiday travel begins.