Venezuela president raises fuel price by 1,300% and devalues bolivar to tackle crisis

[Little Tich]

Source: The Guardian

Nicolas Maduro heavily devalues currency and raises price of subsidised fuel to boost nation’s coffers but critics say measures are not enough

Venezuela’s president, Nicolas Maduro, has devalued the currency and raised fuel prices in an effort to stem a widening economic crisis.

The price of premium gasoline will rise by 1,329%, but fuel is so heavily subsidised that filling a small car will still cost about half the price of a soft drink, or about $0.23 based on the black market exchange rate.

The measures are meant to help shore up the Opec nation’s finances as plummeting oil prices and a collapsing state-led economic model have left the country with a severe recession, triple-digit inflation and chronic product shortages.

Read more: http://www.theguardian.com/world/2016/feb/18/venezuela-president-raises-fuel-price-by-1300-and-devalues-bolivar-to-tackle-crisis

[Matthew28]

1. He needs to invest in infrastructure, science, r&d and education big time!

Things that grow your economy and allow a private sector.

[MADem]

5. With what? His good looks? He has mortgaged the country's oil wealth to China.

His wife and family and cronies have stolen the treasure of the nation and stuffed it away in foreign banks.

He has wasted resources, made bad deals, thrown good money after bad on stupid schemes, tried to buy love with his heavy, sulfurous oil, and in general, behaved like an incompetent, dictatorial ass since he took power--and the legislature in VZ very artfully gave him enough rope to hang himself.

Things are going to get ugly in VZ. It's hard times ahead. The first thing the people need to do is accept that things are going to be tough for awhile, and try to maneuver a leader with credibility into the Presidency, so they can get some help from other nations.

No one's willing to lend Maduro a damn quarter to make a phone call--he'll never pay you back, and he'll charge the call to your house, while he's at it!

[duplex]

15. Bleak but true

Good post MADem and unfortunately there doesn't seem to be any silver lining to the maduro cloud blanketing that beautiful country.

[Recursion]

8. He needs non-Venezuelan cash for that

That's the big problem

[Akicita]

2. 1300% increase? Maduro sounds like that Martin Shkreli guy.

[newthinking]

4. The price was .015 (1.5 cents) per litre. So they increased it to 3 cents a liter

Not exactly the same thing?

[ProfessorGAC]

10. 1.5 Cents to 3 Cents is 1300%?

You sure you figured that right?

[Bacchus4.0]

11. No, its 2 cents to 85 cents however both of those are at the official rate

at the black market exchange rate gas will be about 9 cents a liter with the increase.

[ProfessorGAC]

13. That May Be

But the post to which i was responding used the figures 1.5 and 3.

[Bacchus4.0]

14. No, thats not right. The "official" exchange rate is now 10 bolivars to the dollar

and I am seeing the cheapest gas will be 1 Bolivar for a liter which is 10 cents US.

Recall though that the economy is very much black market oriented at 1000 Bolivars for a dollar meaning at that rate a liter is less than a US penny but then again the minimum wage is like 40 cents a day at the black market rate.

[newthinking]

16. Obviously I did not. 19.5 cents a litre, or 74 cents a gallon

Looks like abbucus had more recent info than the source I found.

[Sunlei]

3. Others try to raise the price of a barrel to $50, Venezuela can undercut their price & raise money.

Global price competition for crude oil sales means savings at the gas pump for consumers.

[Bacchus4.0]

12. No, that is what they do NOT want to do. Venezuela wants the price at $100 a barrel or more

They do not want to undercut oil prices at all. Their economy is completely petroleum based so they want high prices all around.

[brooklynite]

6. Hmm, by devaluing the Bolivar, he may have dealt with the toilet paper crisis...

[Yupster]

7. Good one

Nothing like good dry humor.

[Adrahil]

9. Ha! I see what you did there....

I see the bus driver has a firm grip of economics!

[Corey_Baker08]

17. Gas Prices Were $1.30 2 Days Ago-Now $1.80 Here On The Ohio/Indiana Border...

Rising Gas Prices Certainly Will Not Help The Democratic Party & Will Give Republicans Ammunition In The General Election...