Venezuela: Maduro announces regulation of gasoline sales – International



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Although he did not announce a price increase, Mr. Maduro pointed out that current fuel prices do not cover production costs and encourage smuggling. He therefore proposed that their sale be regulated by means of the "carnet de la patrie", an electronic card that gives access to state aid.

"Essence, it is saying that it is offered we pay to provide it, "said the president, referring to the costs of production and delivery. "We must move to a rational use", and "it will lead to changes in all the car transport", he said before the Congress of the United Socialist Party of Venezuela (PSUV).

To this end, a census of "all those who have a vehicle" will be conducted from August 3 to 5 using the "notebook of the motherland", said Mr. Maduro.

Venezuela, producing country which in addition is facing a crisis hyperinflation, has the cheapest gasoline in the world: with a dollar can buy more than three million liters. Government says mafia groups are smuggling it to foreign countries.

While inflation could rise to 1.000.000% this year by the International Monetary Fund (IMF), Maduro announced last Wednesday that Venezuela would remove five zeros from its currency, the bolivar, two zeros more than originally announced on August 20.

With the new currency thus planned, one could buy 50,000 liters with 0.5 bolivar. [19659002Inthefaceofthissituationtheexpertsconsideritverylikelythatthegovernmentwillbeforcedtomodifyfuelprices

But the increase in the price of gasoline is a taboo in Venezuela, an oil country. On February 17, 2016, Mr. Maduro raised it for the first time in two decades, bringing it to 1 bolivar per liter.

Paradoxically, the forum of the PSUV, which must last until August 30, debate the possibility of removing controls that weigh on the Venezuelan economy. According to badysts, these controls are at the root of the country's severe economic crisis, hit by poverty and shortages that have driven hundreds of thousands of Venezuelans into exile.

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