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Venezuela petrol prices need to rise to global levels to prevent fuel smuggling, says Nicolás Maduro

For the price of a cup of coffee, a driver can fill the tank of a small SUV nearly 9,000 times

Deisy Buitrago,Brian Ellsworth
Tuesday 14 August 2018 12:18 BST
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Venezuela, like most oil producing countries, has for decades subsidised fuel as a benefit to consumers
Venezuela, like most oil producing countries, has for decades subsidised fuel as a benefit to consumers (Reuters)

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Venezuela’s heavily subsidised domestic gasoline prices should rise to international levels to avoid billions of dollars in annual losses due to fuel smuggling, president Nicolas Maduro has said.

“Gasoline must be sold at an international price to stop smuggling to Colombia and the Caribbean,” Mr Maduro said in a televised address on Monday.

Venezuela, like most oil producing countries, has for decades subsidised fuel as a benefit to citizens.

But the country's fuel prices have remained practically flat for years despite soaring hyperinflation the International Monetary Fund has projected would reach 1,000,000 per cent this year.

That means that for the price of a cup of coffee, a driver can now fill the tank of a small SUV nearly 9,000 times.

Smugglers can make considerable profits reselling fuel in neighbouring countries.

Mr Maduro said the government would still provide “direct subsidies” to citizens holding the “fatherland card,” a state-issued identification card that the government uses to provide bonuses and track use of social services.

He said the subsidy was only available to those who registered their cars in a vehicle census being conducted by the state.

Reuters

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