Venezuela Increases Fuel Prices for First Time in 20 Years

Venezuela has decided to increase fuel prices for the first time in 20 years, although President Nicolas Maduro claims it will still be the cheapest in the world.

Nicolas Maduro said pump prices of premium fuel would rise from the equivalent of $0.01 a liter to about $0.60.

The cost of lower grade petrol would rise to about $0.10 a liter.

Nicolas Maduro unveiled a series measures to help ease Venezuela’s economic crisis, including devaluing the currency.

The rise in the heavily-subsidized fuel price will save $800 million a year.

“Venezuela has the cheapest gasoline in the world,” Nicolas Maduro said in a TV address.

“The cost is almost nothing.”

However, other countries, including Saudi Arabia also have extremely cheap, subsidized petrol prices.

Nicolas Maduro said the price rise was “a necessary measure, a necessary action to balance things, I take responsibility for it.”

Food and petrol price increases in 1989 sparked nationwide protests that resulted in scores of deaths, unrest that is considered to have paved the way for the late President Hugo Chavez’s rise to power.

Venezuela’s economy has been pushed to the brink by the collapse in the oil price, which accounts for about 95% of the country’s export revenues.

The economy shrank 10% in 2015, amid rampant inflation and shortages of some basic products,

According to the Bloomberg news agency, the state oil company Petroleos de Venezuela incurred $15.2 billion in costs in 2013 to maintain Venezuela’s fuel subsidy.

Nicolas Maduro also announced that the government would “simplify” the complex exchange rate from February 18, easing the protected official rate for food and medicine imports which will now operate alongside a parallel “floating” rate.

Investors have become increasingly concerned about Venezuela’s potential default on its huge debts.

Diane A. Wade

Diane is a perfectionist. She enjoys searching the internet for the hottest events from around the world and writing an article about it. The details matter to her, so she makes sure the information is easy to read and understand. She likes traveling and history, especially ancient history. Being a very sociable person she has a blast having barbeque with family and friends.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago