Gather all your ingredients so that you everything close at hand on the counter or table. Prepare your ingredients. Using a sharp knife and cutting board, mince the onion and garlic.
In a small saucepan, combine the vegetable oil, minced onion and garlic and the tomato paste. Simmer for 3 minutes.
Add the chili powder, cider vinegar, granulated sugar, dried oregano, kosher salt, freshly ground black pepper, and the ground red pepper. Stir to combine so that all the flavors are mixed in.
Mix in the water. Whisk together to create a smooth sauce. Bring to boil. Reduce the heat and simmer for 15 minutes uncovered.
Use in your favorite Enchilada Recipe. This recipes makes approximately 2 1/2 cups.