President Michelle Bachelet on Tuesday called on Chilean gasolene distributors to lower prices at the pump immediately as her administration slashes fuel taxes.

Distributors, although accustomed to fluctuations in government-dictated gasolene prices, said they did not know how to proceed on the tax matter without further instructions from regulators.

Sydney Houston, general manager of a Chilean fuel distributor's organisation, said the 400-member group regretted it had no means of complying with her request.

"There's a lack of technical information about how we can bring this price reduction to the public," Houston said. "We don't know how."

Bachelet requested the immediate price cut in public comments, saying she wanted to help struggling families hit hard by the rising price of gasolene.

"I hope that this price decrease is put into action starting today, for the good of all Chileans," she said.

Gasolene costs about US$4.85 a gallon (€0.82 a litre) at the pump in Chile, where 97 per cent of fuel is imported.

The fuel tax cut, which took effect on Tuesday, is only part of a package of economic measures designed to boost the economy and reduce inflation.