FX.co ★ Venezuela gasoline: good luck finding it cheaper

Venezuela’s government decided to maintain its gasoline prices the lowest in the world and negotiate any price changes with its citizens. Even harsh economic conditions and serious domestic problems could not reassure the officials about selling its gasoline at the world’s lowest price. One liter of high-octane gasoline costs 9 centimes, while filing up one tank in Venezuela costs 4.5 bolivars. Thus, a car owner from Venezuela pays just 75 U.S. cents for a 50-liter gasoline tank. However, such generosity comes at a high cost for the country’s budget, which is always in deficit. So, almost-free gasoline is one of the major reasons for economic crisis in Venezuela. The fuel subsidy totals $12 billion a year with oil production cost 28 higher than its output price. Yet, the selling price has been unchanged for 17 years. Still, the Venezuelan people are not satisfied with their government. As a result, there have been ongoing anti-government protests since February 2014 in Caracas. During that period, dozens of people became victims of clashes between demonstrators, law enforcement officials, and supporters of Maduro. Mass protests broke out across the country after the president elected in 2013 brutally repressed peaceful protests held by Venezuelan students. Taking into account today’s ways of expressing disagreement and protesters’ weakness for petrol bombs, low gasoline price could lead into trouble for the government.