Left Menu
Development News Edition

Venezuela's government increases gasoline prices starting in June

Reuters | Updated: 31-05-2020 06:58 IST | Created: 31-05-2020 06:58 IST
Venezuela's government increases gasoline prices starting in June

Venezuela's President Nicolas Maduro on Saturday announced a price hike for gasoline after two decades of frozen values at the pump, as part of a system to fill vehicles and motorcycles with subsidized fuel up to monthly quotas and pay internationally indexed prices over those levels. The plan, which comes as the United States threatens to cut off gasoline supply by Iran due to sanctions, is set to start on Monday, Maduro said in a broadcast announcement.

Drivers will be allowed to fill their vehicles with up to 120 liters (31.7 gallons) of gasoline per month at a price of 5,000 bolivars (about $2.5 cents) per liter, while subsidized sales to motorcycles will cover up to 60 liters (15.85 gallons)per month. Despite the increase, the whole tank of a vehicle will be filled for about $1 thanks to the subsidy.

Over those quotas, drivers will have to pay the fuel at internationally indexed prices, Maduro said, without elaborating on how much stations will charge when they start offering fuel imported from Iran. Venezuela, an OPEC member that sits atop the world's largest crude reserves, is suffering the worst gasoline shortages in its modern history due to a near-complete collapse of its refineries.

Gasoline will continue to be fully subsidized for all public transportation, cargo trucks and diesel sales, Maduro added. About 200 of the country's 1,800 gasoline stations will be supplied by independent importers who will be responsible for distribution. Fuel at those sites will be sold in foreign currency at a price of $0.50 per liter, the president added.

As state-run oil company PDVSA, under severe U.S. sanctions, struggles to produce enough fuel to satisfy consumption, Maduro said Venezuela needs to move to a model allowing all sales made at international prices in the future. "(These) are exceptional measures, needed to normalize (supply) amid tensions created by the North American imperialism. I ask all the Venezuelan people for their comprehension and maximum support," Maduro said.



Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...


Latest News

17 fresh coronavirus cases detected in UP's Muzaffarnagar

Seventeen people tested positive for COVID-19 on Sunday, including six employees of UP Power Corporation Limited and two policemen, taking the number of active patients in the district to 123, officials saidAccording to health department so...

Motivate migrant workers to take up fishing in unutilised village water bodies: CIFA

Migrant workers who have returned home because of the coronavirus pandemic should be encouraged to take up fishing in unutilised water bodies as it will provide alternative livelihood to them and create rural employment, according to CIFA. ...

Stricter lockdown on weekends in UP

The Uttar Pradesh government has decided to impose stricter lockdown across the state on weekends to stop the coronavirus spread, a senior official said on Sunday. The decision has come amid a spike in the number of infection cases, which...

Corporate funding in solar sector falls 76 pc in H1 2020 to USD 462 mn: Report

Total corporate funding in Indias solar energy sector dropped 76 per cent to USD 462 million about Rs 3,474 crore in the first half of 2020, a report said. Corporate funding includes venture capital funding, public market, and debt financ...

Give Feedback