Monday, October 25, 2021

Venezuela raises petrol price for first time in 20 years


Robert Frank
Robert started his career as a freelance content writer. Now, He is the founder of widely-recognized PR Agency. Robert still writes news pieces on various publications.
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The Venezuelan President, Nicholas Maduro, announced today, Sunday, the raising of fuel prices, which until now was almost free, starting from June 1, and Maduro said – according to the channel – that “the international price we set is 50 cents per liter Of gasoline, “pointing out that 200 gas stations can sell it at this price, putting an end to the state’s monopoly to sell fuel in the country, and private contractors will be allowed to import gasoline.

He added, “The establishment of a subsidy system based on five thousand bolivars ($0.025) per liter, allows the purchase of 120 liters of gasoline per month for private cars and 60 liters for motorcycles, and the public transport sector for passengers and goods” will receive a 100% subsidy “.

It is noteworthy that Venezuela suffers from a shortage of fuel, despite the fact that it possesses huge reserves of oil, due to the decline in production, in a crisis exacerbated by the outbreak of the Corona epidemic “Covid-19” and its economic consequences.

Of the 1,800 stations in Venezuela, about 240 workstations have continued since Maduro announced public isolation measures to contain the outbreak of the Coronavirus in March, which included restrictions on fuel sales due to a sharp drop in stocks.

Read also: A study proposes a plan to coexist with Coronavirus

More than 1,500 stations are expected to operate in the coming days, according to the new system, which includes monthly quotas for vehicles and motorcycles, automatic sales, and monitoring devices. Despite the increase in prices, filling the vehicle’s fuel tank will cost about one dollar at the end, under support.

After reaching the quotas, drivers will have to pay at international prices.

Independent companies will supply the remaining 200 stations, which will make it necessary for drivers who buy gasoline to pay half a dollar a liter, in hard currency.

Queues began forming at stations on Saturday in cities including Maracay, Valencia and Caracas pending the distribution of gasoline.

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