Venezuela hikes gas prices 6,000 percent amid economic recession

World Today

Venezuela is raising gas prices for the first time in nearly 20 years. It’s going up 6,000 percent, but relatively speaking, it’s still extremely affordable compared to other countries.

The announcement by Venezuela is one of a series of measures the oil-producing nation is taking in the midst of a steep recession.

CCTV’s Stephen Gibbs reports from Caracas.

Venezuela hikes gas prices 6,000 percent amid economic recession

Venezuela is raising gas prices for the first time in nearly 20 years. It's going up 6,000 percent, but relatively speaking, it's still extremely affordable compared to other countries.

Venezuela has the cheapest gasoline in the world. For years, filling up a car has cost a fraction of a single U.S. cent, at black market rates.

Friday, the price of the most expensive gas rose 6,000 percent. But still, that full tank will cost far less than a can of Pepsi.

This may be one of the few countries in the world where people actually say the price of gasoline should be higher.

The price increase was announced near the end of a five-hour address to the nation by Venezuela’s President, Nicolas Maduro. He also said the nation’s currency will be devalued by 37 percent.

The Venezuelan government says it does have a plan to improve the economic situation. But if that plan fails, it risks paying a steep political price.