Chilean Congress Approves Bill to Stabilize Kerosene Prices and Provide Financial Aid to Taxi Owners

Original article: Cámara aprobó proyecto para contener precio de la parafina y entregar bono a propietarios de taxis y colectivos Chilean Congress Approves Bill to Stabilize Kerosene Prices and Provide Financial Aid to Taxi Owners The Chamber of Deputies has approved, in its first constitutional process, a government bill presented by Kast that adopts «temporary measures» to control the price of kerosene or domestic kerosene (bill 18137). This text, introduced with urgency for immediate discussion, will now be reviewed by the Senate in its second constitutional procedure. According to the Chamber’s bulletin, the initiative authorizes a temporary increase of 60 million dollars to the Oil Price Stabilization Fund (FEPP) to curb the rise in kerosene prices «in the context of rising oil prices due to the armed conflict in the Middle East».

As stated in the government’s rationale, the measure aims to benefit low-income households that rely on kerosene for heating during the autumn and winter months, the report adds. Furthermore, the text modifies the calculation formula of Law 19,030, which established the mentioned fund, ensuring that kerosene prices remain comparable to levels seen in February 2026. Other Approved Provisions First, a subsidy will be provided for six months, amounting to 100,000 pesos monthly for taxi and collective transport owners.

Additionally, the government has introduced an amendment to include school transporters, following a request made in the Finance Committee. This benefit can only be used for purchasing fuel and is transferable by the owner to the vehicle’s driver. However, the text also stipulates that payments will be suspended if the average monthly price of Brent oil falls below 80 dollars.

Meanwhile, a provision regarding changes to specific taxes did not receive unanimous support (with 92 votes in favor, 51 against, and 6 abstentions). This addresses varying deduction percentages based on annual income, detailed as follows: 80% deduction for taxpayers with annual incomes equal to or less than 2,400 UF. 70% for those with incomes over 2,400 but not exceeding 6,000 UF.

52. 5% for incomes between 6,000 and 20,000 UF. 31% for incomes above 20,000 UF.

At this juncture, the government attempted to introduce an amendment to exempt SMEs from this article’s application but, lacking unanimity, announced plans to address this matter in the next Senate session. We will continue to keep you informed.