Chile puts higher gas subsidy for congress on hold

SANTIAGO — Chile's lower house of congress has suspended plans to boost a $1,626 gasoline subsidy for each of its members.

The payment dwarfs a $2.80 monthly electricity subsidy President Michelle Bachelet unveiled this week for the nation's poor — and Chileans were quick to object.

Legislators were planning an 11 percent increase in extra gas money, but quickly backed down Thursday and even criticized the increase.

The lawmakers have received the gas subsidy for years to cover the cost of driving to visit constituents, and there was no talk of ending the practice.

Gas now costs about $1.36 a liter, or $5.15 a gallon in Santiago — meaning lawmakers still can buy about 315 gallons using the existing subsidy.

Chile is battling 9.5 percent annual inflation which is driven largely by soaring fuel costs and electricity prices.

"This increase is a fortune, and I think a lot of Chileans are suffering today from high fuel prices," ruling coalition congressman Jorge Tarud told reporters.

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