ENAP does not regulate or set fuel prices in the Chilean market
Its role is the production and wholesale marketing of the different hydrocarbon derivatives to the distribution companies, who sell to the retail market through their service stations.
The price of fuels in Chile to the final consumer is composed of 3 main components:
Import parity price
Import parity price: These reflect the costs associated with importing from the reference market, such as freight, insurance, logistics costs, and quality adjustments to comply with Chilean regulations.
The reference market for Chile is the U.S. Gulf Coast, given its surplus volumes for fuel exports to Chile, competitive nature, proximity, and numerous daily price quotations.
Taxes
Taxes include a 19% value-added tax on ENAP's price and a specific tax, consisting of a base component and a variable component regulated by the Fuel Price Stabilization Mechanism (MEPCO).
Distribution margin
Determined by fuel distribution companies, which directly serve consumers and set their sales prices.