Mario Marcel questions fuel price management and proposes adjusting Mepco caps
At a seminar hosted by the Centro de Estudios Públicos (CEP), former Chilean Finance Minister Mario Marcel criticized the government's handling of rising fuel prices and said that, had he remained in office, he would have kept the Fuel Price Stabilization Mechanism (Mepco) active while adjusting its caps. He argued that the current limit of 30 pesos per liter makes the pass-through of international increases too slow and that doubling it would have avoided sharp hikes at a lower fiscal cost.
In 45 seconds
- Marcel proposes keeping Mepco active but modifying its adjustment limits to speed up the gradual pass-through of international increases.
- He said the current cap of 30 pesos per liter makes adjustment too slow and that doubling it would have avoided sharp hikes.
- He recalled 2022, when the war in Ukraine drove up oil and food prices, and said the government absorbed Mepco's fiscal cost while public spending fell 23%.
Read the full story at BioBioChile
IASummary generated by artificial intelligence from a story by BioBioChile. It may contain errors: the original source prevails.
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