Latin America fuel prices diverge: politics, subsidies and shortages

Retail gasoline prices tend to vary more across Latin America than they do in other regions, even though many nations are notable oil producers. The reasons are political.

Colombia and Ecuador (and until recently, Argentina) tended to subsidize fuel to shield consumers. Brazil, Mexico and Chile were more market-oriented, though would occasionally deploy buffer mechanisms at times of price spikes.

The Middle East shockwaves have had an asymmetrical effect. Ecuador has seen prices surge, as has Chile – where conservative president Jose Antonio Kast is against subsidies. Meanwhile, Brazil and Mexico (where Petrobras and Pemex are reaping oil-price windfalls) have seen little change, and are shielding consumers for now.