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The "almost free" gas was from fixing the price of oil, which caused massive shortages within the country.[1][2] The new government overturned Venezuela's polic
by hellcow 11y ago
The "almost free" gas was from fixing the price of oil, which caused massive shortages within the country.[1][2] The new government overturned Venezuela's policy on this and raised oil prices by 6000%.[3]
[1] http://www.laht.com/article.asp?ArticleId=334115&CategoryId=10717 http://www.laht.com/article.asp?ArticleId=334115&CategoryId=...
[2] http://www.wsj.com/articles/SB10001424127887324000704578386771059515346 http://www.wsj.com/articles/SB100014241278873240007045783867...
[3] http://www.theguardian.com/world/2016/feb/18/venezuela-president-raises-fuel-price-by-1300-and-devalues-bolivar-to-tackle-crisis http://www.theguardian.com/world/2016/feb/18/venezuela-presi...
- mikeash 11y agoThe recent price increase falls far short of overturning this policy. The new price is still ridiculously cheap and far below market prices, something like the equivalent of $0.11/gallon.
- protomyth 11y agoAlso, their oil needs more processing than the stuff coming from Saudi or Texas / ND. This has an effect on the break even price.
- rafaelm 11y agoJust to clarify: there is no new government. The president is Nicolas Maduro,the successor named by Chavez when he realized he was too sick to continue. There was an election to the National Assembly that the opposition won, but they did not have anything to do with the rise in gas prices.