Venezuela: Land of 12-Cent Gas

By subsidizing gasoline, Chávez spreads the oil wealth. But the cost of those cheap fill-ups is becoming hard to ignore
Peter Wilson
A line of cars waits to cross the Venezuelan-Colombian border post in the Venezuelan state of Maracaibo, on Mar. 6, 2008. Pedro Rey/AFP/Getty Images

Global oil prices zoomed up to $135 a barrel this past week. But that doesn't worry Roberto Morales, a 33-year-old Venezuelan businessman. Morales, who drives a compact Volkswagen Gol, still pays only $1.32 to fill up his car with 11 gallons of high-octane gasoline, thanks to Venezuela's subsidized fuel price.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.

Read this article on the Terminal Request a demo to learn more

You might like:
  1. Maria Latest Threat to Puerto Rico After $1 Billion Irma Hit
  2. How Toys ‘R’ Us Collapsed So Quickly
  3. The World’s Biggest Wealth Fund Hits $1 Trillion
  4. Finland’s Welfare State Has a Massive Baby Problem
  5. Bitcoin Is Likely to Split Again in November, Say Major Players