It is being reported on that the people of Chile are so upset about the rising fuel prices that they are going to the streets. The reality is fuel prices were higher a year ago. And much higher 5 years ago.
What has changed is climate change policies made the prices rise. Then they were blamed on the free market.
Blaming capitalism for the failures of socialist policies. Venezuela 2.0
Climate activists and the United Nations are suffering a major black eye this week as protests and riots resulting from high energy prices have erupted in Santiago, Chile.
Chile, which will host a major U.N. climate conference in December, earned praise from climate activists for recently imposing a carbon dioxide tax on conventional energy sources and switching the Santiago Metro system to renewable power. Now, the people of Chile are rising up and firing a shot across the bow of other nations considering similar energy taxes and expensive renewable energy programs.
On Oct. 25, protestors took to the streets throughout Santiago in response to Metro fare hikes. The protests soon spread to other cities and led to rioting and at least five reported deaths. The Chilean government and the legacy media blamed the fare hikes on rising oil prices. But that isn’t true.
Oil prices aren’t rising. Global oil prices are currently 25 percent lower than they were a year ago and 37 percent lower than they were five years ago.
In Chile, gasoline prices reflect the lower oil prices. Chilean gasoline prices were $1.12 per liter in August (the most recent month for which data are available), compared to $1.28 a year ago. Five years ago, gasoline sold at $1.50.
Santiago Metro fares are rising, amid falling oil and gasoline prices, because government officials in 2018 traded out most of the Metro’s energy sources to wind and solar power from conventional sources. The Chilean government also hit the portion of conventional power that remains with new carbon dioxide taxes.
As a result, Chileans are now burdened by higher Metro fares reflecting unnecessary energy price increases. As Chileans protest, climate activists and their media allies want people to believe oil is to blame, rather than government climate programs that raise energy prices and impoverish people.