SANTIAGO, Chile — Facing soaring diesel and gasoline costs that paralyzed major transport routes, NPR reported in an article published on November 14, 2026, that Chile’s far-right government has been pushed onto the political defensive after just eight months in power. President José Antonio Kast, who assumed office following a December 2025 electoral victory centered on public security and immigration, has seen his public approval rating plunge to 24% amid widespread discontent over living costs, environmental rollbacks, and controversial prisoner sentence reductions.
SANTIAGO (Azat TV) – The immediate catalyst for the current political crisis centers on escalating fuel prices and subsequent disruptions across Chile’s major highway corridors. According to Latin Times, freight carriers launched coordinated blockades in November 2026 along Route 5 Norte and Route 5 Sur in regions including Tarapacá and Biobío. These actions paralyzed cargo transit and trapped private vehicles in multi-kilometer traffic jams, forcing the administration to abandon its previous stance and submit emergency legislation to reverse planned fuel price hikes.
The Roots of the MEPCO Reform and Fuel Hikes
The fuel cost surge traces back to administrative decrees issued by the Kast administration in late March 2026, which modified Chile’s Fuel Price Stabilization Mechanism (MEPCO). By reducing the fiscal buffer that shielded consumers and businesses from global oil price fluctuations—exacerbated by international conflicts involving the United States, Israel, and Iran—the government allowed market rates to pass rapidly through to the pump. Transport union representatives told Latin Times that cumulative increases reached roughly 700 pesos per liter following the MEPCO alteration, making stable freight rate calculations nearly impossible.
In response to mounting pressure, President Kast initially confirmed a 40-peso-per-liter fuel increase effective mid-November and proposed a 90-day emergency ceiling capping any single adjustment at 20 pesos per liter. However, as major trucking confederations and motorists rejected the measure as inadequate, freight operators blockaded key north-south arteries. The strike was broken after the government backed down, sending a bill to the Chilean Congress designed to reverse planned price increases, with legislative approval expected before the end of November 2026.
Broader Discontent and Regional Context
Beyond transport and energy costs, President Kast’s administration faces broad public ire over fiscal austerity and social policies. At a demonstration in Santiago, citizens voiced anger over cuts to science, culture, and education budgets, alongside decrees signed last month that reduced sentences for 56 prisoners convicted of crimes ranging from child rape to dictatorship-era human rights abuses. While Kast later acknowledged the decrees as an administrative error, public trust has eroded significantly.
The challenges confronting Chile reflect a wider regional trend among right-wing administrations in the Americas aligned with populist figures. In Argentina, libertarian President Javier Milei faces a 60% disapproval rating amid spiraling inflation, while in Peru, President Keiko Fujimori confronts a 53% disapproval rating according to recent polling data cited by NPR. As Chile’s congressional budget debate continues to press for spending reductions across social programs, analysts warn that street demonstrations in Santiago and regional hubs will likely intensify if the government fails to stabilize the cost of living.