Venezuela explores raising gasoline costs to combat drop in crude price

Global Business

The sharp drop in crude oil prices has hit producer countries such as Venezuela hard, which is why Venezuelan President Nicolas Maduro announced to the legislature last month that gas prices would increase for Caracas to offset losses and the billions in subsidies that are paid to provide the cheapest gas in the world. Martin Markovits reported this story from Caracas, Venezuela.

Venezuela may have the cheapest gas around — just 60 cents to fill your tank — but the the country’s deep economic recession and plunging oil prices could mean there’s no choice but to increase prices.

Venezuela explores raising gasoline costs to combat drop in crude price

Venezuela explores raising gasoline costs to combat drop in crude price

The sharp drop in crude oil prices has hit producer countries such as Venezuela hard, which is why Venezuelan President Nicolas Maduro announced to the legislature last month that gas prices would increase for Caracas to offset losses and the billions in subsidies that are paid to provide the cheapest gas in the world. Martin Markovits reported this story from Caracas, Venezuela.

“They have to increase the price of gas because it’s very cheap right now, for what you pay for a bottle of Coca – Cola you can fill a tank with gas,” gas station attendant Melvin Hernandez said.

The government recently launched a major ad campaign to inform the public about the need for a fairer price of gas, but those who rely on subsidized prices said it would cause a domino effect and increase prices on everything.

“There will be an increase in the fares people pay to get to work. There are people who have to take one to three trips daily to work. It would be a blow to the community. It will increase the cost of food, which you can barely get today,” bus driver Franklin Navaro said.

It’s not clear whether the price of gas will rise substantially, but any increase will show a shift in priorities for Venezuela’s reliance on its domestic oil production to keep its economy afloat.