Quote:
Originally Posted by LOCa
Wow I Would Not Pay $18 Bucks For A Gallon Of Gas.
Owee Go Venezuela...! .17cents For A U.S. Gallon Thats What Im Talking About. Yeah! I Wanna Live There!
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I think I read somewhere that their gas is 25% ethanol, which is a by-product of their sugar production. The majority of Venezuelans are very poor and they rely on public transport. The poor aren't really getting the benefit of the cheap gas, really, but it's there if they need it and have a vehicle.
Venezuela's oil is produced by a government-owned company and local gasoline prices are subsidised by their government to keep their citizens happy.
There were riots in 1989 when Venezuela raised fuel prices as part of a move to reduce government [SIZE=-1]spending in order to pay back creditors[/SIZE]. This pushed up bus fares and resulted in anger among the poor, setting off riots. Soldiers and police clashed with rioters, leaving more than 300 people dead, according to official estimates. Human-rights groups put the toll much higher. So they're keen to avoid any of that happening ever again.
There are estimates that it costs Venezuela $9 billion USD a year to keep their gas prices low. That's socialism in action for you though.