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For 1 euro tank you 6.2 million gallons of gasoline, Venezuela pulls alarm bell

be78b9decdfee26fd4e29b50dec77ff0 - For 1 euro tank you 6.2 million gallons of gasoline, Venezuela pulls alarm bell

By the hyperinflation in Venezuela, which according to the IMF by the end of 2018 to 1 million percent will rise – you can go for one euro less than 6.2 million litres of petrol. President Maduro takes action.

The petrol in the oil-producing country, is a specialty. Currently, it costs a liter of fuel a bolivar. That is to say: with one dollar, which is traded on the black market, a 5.4 million-litre (or 6.2 million liters for one euro) to be purchased.

Venezuela is in a severe economic and political crisis since the collapse of the oil prices four years ago. Hundreds of thousands of Venezuelans fled because of the shortages of food. As the petrol at the same price as on the international market is sold, the large majority of Venezuelans that do not pay more. The minimum wage of about one dollar, barely enough for a kilo of chicken to buy.

State aid

Measures are necessary. Henceforth will get only about the document ” Carnet de La Patria’, a direct subsidy for the refuelling of gasoline. That is an electronic card that gives the holder access to state aid.

President Nicolas Maduro has Monday announced that the Venezuelans until Friday to have their vehicle registration, they wanted the subsidy to enjoy. He wants the fuel prices to the international prices rise. “The people who do not reply to the call for registration which does not want to enjoy the direct grant, will the fuel at the international price to pay,” said Maduro in a television address. He said, although not from when the price increase would take effect.

Maduro explained that the measure for the next two years is intended. The president hopes that the fuel prices as international prices reach, so as to put an end to the smuggling.

Of 1,000,000 percent inflation

According to Maduro is the low petrol price to be the cause of a trade in the direction of Colombia. He is of the opinion that this is a net loss of converted 15,80 billion euro per year means for the country. The price adjustment following the devaluation of the currency, the bolivar, on 20 August.

The measure is part of a programme to the country’s economy to revive. Venezuela has four years of recession. The inflation would be this year according to the IMF, 1.000.000 percent amounts. The ‘Carnet de la Patria’ is criticized by the opposition. Who sees it as a ‘social and political control’ of the government, and an ‘electoral blackmail’.

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