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Petrol prices: Venezuela is the tank paradise

Anyone who drives to the petrol pump in their car in Venezuela usually leaves the petrol station with a big grin. The country has the cheapest gasoline prices in the world. The state makes it possible.

Petrol prices: fill up for one euro

At least for drivers, Venezuela is a real paradise. The socialist government of Hugo Chávez ensures a good mood at the petrol stations of the fifth largest oil exporting country in the world, because the liter of petrol costs converted and generously rounded up only 0.02 euros. Even a normal car tank can easily be full for one euro.

Sometimes moped drivers pay nothing

Motorcyclists can also drive off without paying. Because a bill of 10 or 20 euro cents for a small moped tank filling is almost not worth the effort.

Expensive subsidized gasoline

But what may appear to German motorists as a refueling paradise is subsidized by the Venezuelan state at a high rate, with over 90 percent. The price only covers a fraction of the manufacturing costs.

But Chávez sees the low fuel prices that have been in effect for more than 13 years as a boon for the people, from which, however, large cars or very old sledges with six or eight cylinders and huge cubic capacities of three to four liters benefit in particular. With the ridiculous price, it doesn't really matter whether the engine swallows 10, 20 or 25 liters per 100 kilometers. Right of way for environmental protection? Nothing.

"Venezuelan gasoline is the cheapest in the world"

However, the subsidy costs are enormous. The state-owned oil company PDVSA alone is foregoing around 1.5 billion US dollars a year, as announced by Minister of Oil and Mining Rafael Ramírez last year. According to various estimates, the total costs for the subsidies are significantly higher, between 7 and 12 billion US dollars per year. As a consequence, Ramírez, who is also PDVSA President, can rightly say: "Venezuelan gasoline is the cheapest in the world."

Venezuela has no end of oil

The government admittedly urges the Venezuelans to save fuel and thus subsidies. And gas-powered cars are also being advertised - but so far without any resounding success. For the economy of the OPEC country Venezuela, oil resources are a key. Over 90 percent of Venezuela's export revenues come from oil exports. In addition, around a third of the gross national product is generated from oil revenues, which account for over 50 percent of government revenues.