Politics, Business & Culture in the Americas

Talks Break Down over Chilean Gas Prices

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Talks between government officials and local leaders on Monday failed to end protests over an increase in natural gas prices in the south of Chile. Chile’s Mining and Energy Minister Laurence Golborne travelled to the regional capital of Punta Arenas to offer a limit on the price increase to 3 percent, an improvement from the 17 percent originally estimated, and to continue subsidies for poor families. But the concessions were not sufficient to appease the demonstrators.

The protests began last week when Chile’s state-owned national petroleum company (Enap) decided to reduce local subsidies beginning in February, causing the spike in gas prices. Gas is of particular concern to the residents of southern Chile, where the artic temperatures require more household heating than in other regions of the country.

Demonstrators have been blocking roads and ports, leaving hundreds of tourists stranded last week, though many have since managed to leave the region. The Chilean government is considering using state security if protests continue.

Tags: Chile, Energy security, Environment, Patagonia
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