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Venezuela Fuels Up: Dollar Price Hike at the Pump
20 Feb
Summary
- Premium gasoline now sold exclusively in dollars at select Caracas stations.
- Prices approach US levels, costing $3.78 per gallon for premium fuel.
- Move aims to generate revenue amidst oil industry reopening to investment.
Venezuela has initiated a significant shift in fuel pricing, introducing premium gasoline at select stations in Caracas. This new offering is exclusively priced in dollars, with the cost reaching approximately $3.78 per gallon, a substantial increase and a move towards pricing closer to U.S. levels. This strategy is part of Petróleos de Venezuela SA's (PDVSA) broader effort to generate new income streams.
The state-controlled oil company is reopening the industry to foreign investment and seeking to boost output. The premium gasoline is produced domestically, aiming to offer higher quality after years of mismanagement affected the country's refining capabilities. Previous attempts to raise fuel prices have historically faced public resistance, though heavily subsidized fuel remains available at a majority of stations.
