Chile faces diesel import challenges amid global oil price volatility

Global oil prices have risen following the United States' rejection of an Iranian proposal intended to reduce tensions and normalize transit through the Strait of Hormuz. This movement maintains uncertainty within the energy market.

In Chile, the volatility of international fuel prices continues to impact the domestic economy, particularly regarding diesel. While Chile refines most of its gasoline through industrial complexes in the Valparaíso and Bío Bío regions, the country remains heavily dependent on diesel imports. Approximately 40 percent of the diesel used in Chile is imported as a finished product because domestic production cannot meet total demand. A significant technical bottleneck exists due to strict environmental regulations requiring ultra-low sulfur fuel (10 ppm), which necessitates complex hydrotreating processes in refineries to transform crude oil into compliant vehicular diesel.