Earlier this year Venezuela president Nicolas Maduro announced higher gas prices. The state owns the oil companies in the socialist nation, and therefore controls prices. The increase was 6,000 percent, but Venezuelans still have the cheapest gas in the world.
Venezuela has the worlds largest proven oil reserves, and was flourishing when oil prices were high. Oil prices have fallen drastically and that has meant a crash for the Venezuelan economy. Under Hugo Chavez there were many social programs, and many things subsidized said expert Adrian Jose Velasquez Figueroa. A tank of gas, for instance, used to cost just a few pennies.
A liter of gas used to cost the equivalent of one U.S. penny, but after the announcement of an increase, it will be about 60 U.S. cents.
It is just one way to get some money as the nation continues to struggle with low oil prices around the world. Oil exports account for 95 percent of export revenues, which is a huge part of the nation’s economy. Maduro said he wanted to have fair prices but also pay for the investment that turns crude oil into gasoline.
In the face of struggling economy, there is more political unrest. According to Dateas.com, there is a move to oust Maduro through a referendum that may be held after the halfway point of a president’ term. Maduro was elected to a six year term in 2013, and the opposition has the wheels in motion to try to oust him.