Gasoline price in Venezuela down to USD 0.01 upon devaluation
Annual subsidies in gasoline are estimated at USD 1.7 million
Upon the latest devaluation of the Venezuelan currency from VEB 4.30 to VEB 6.30 per US dollar, the value of a liter of gasoline of 95 octanes slipped from USD 0.022 to USD 0.015, based on the official foreign exchange rate.
In recent days, the Executive Office has intensified its discourse on the advantages of the devaluation of the bolivar. Although the measure implies a 3.3% reduction of the fiscal deficit according to the authorities, ministers of the economic cabinet have ascertained that the action is not for fiscal reasons.
Economists Luis Oliveros and Domingo Sifontes have explained that upon the 46.5% devaluation, subsidies in gasoline may account for USD 1.7 billion a year. This is just the result of production costs, which are 10 times the price of gasoline.
For his part, amid concerns about a rise in the price of gasoline, oil Minister Rafael Ramírez said that it had nothing to do with fiscal needs, but a particular "behavior related to the squandering of natural resources."
Translated by Jhean Cabrera
At least 30 years had passed since his last visit to Caracas. He had little time to become an expert on moving about in such a complicated metropolis. Whether it was hopping on the subway, finding directions, playing waiting games at public agencies, eating whatever he could and sleeping wherever he could, Guerrero senior had been wandering the streets for 60 days, and thanks to "the boys" he found some sort of relief by way of helping hands.