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Heat oil in a 3-quart saute pan over medium heat. Add rice and stir to combine. Cook, stirring frequently, for 3-5 minutes, until rice begins to turn a golden color.
Add chili powder, Caldo de Tomate (tomato boullion), and minced garlic. Stir to combine.
Pour in water and tomato sauce and stir to combine.
Bring to a boil, then reduce to low and cover. Simmer for 20 minutes, or until all water has been absorbed.
Turn off the heat and let the rice rest, covered, for 5-10 minutes.
Fluff rice with a fork and serve.