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Venezuela to face 6,000% rise in petrol prices

The move has been described as "aggressive" by some, as Venezuela tries to battle triple-digit inflation and the country's deepest recession in a decade

Saturday 20 February 2016 16:36 GMT
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A picture of a gas pump at a Petroleos gas station in Caracas, Venezuela
A picture of a gas pump at a Petroleos gas station in Caracas, Venezuela (EPA/MIGUEL GUTIERREZ)

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Petrol prices in Venezuela will rise by almost 6,000 per cent after an announcement from President Nicolas Maduro.

The price of a litre of high-quality gas is currently approximately one US cent and will be increasing to 60 US cents.

The move has been described as "aggressive" by some, as Venezuela tries to battle triple-digit inflation and the country's deepest recession in a decade.

"That's an aggressive hike in fuel prices and it's still the cheapest in the world," Edward Glossop, an economist at Capital Economics who covers Venezuela, told CNN Money.

The increase is the first in almost two decades, with the last change in prices sparking vast protests throughout the country.

"Venezuela has the cheapest gasoline in the world. This is a necessary measure, I assume the responsibility," Mr Maduro is reported to have said before the announcement, according to Bloomberg.

Mr Maduro also announced a new structure for the exchange rate. One bolivar went from being worth 6 US cents to 10 US cents.

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