Venezuela reportedly now sells gasoline at about 0.2 U.S. cent (one-fifth of a penny) a gallon in Venezuela, based on black-market currency rates. Expressed another way, you can get 482 gallons with just one dollar.
Now, Venezuela President Nicolas Maduro told lawmakers last week he’s considering raising gasoline prices because the government may no longer be able to keep doling out to its citizens as the collapse in oil exports pushes the country to the brink of default.
“They are basically bankrupt” and “cannot afford” these kinds of subsidies anymore, Siobhan Morden, head of Latin America strategy at Jefferies LLC, said in a Jan. 23 interview.
Source Bloomberg
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