— SteemCN

Hi @archive.xyz thank you for your welcome! Why is the gasoline price so weird? That is a good question!. There is several reasons some venezuelans use to explain that, but for me none of them are really the right answer. You will always hear Venezuela is the country with the largest oil reserves in the world and for that for us is very cheap to produce gasoline. That is so unaccurate: it is true we have the largest reserves of oil in the world and we are a significant oil exporter (every day much less significant) but domestic refining capacity is minimal. So the government export oil obtaining foreign currency and use some of the money to buy gasoline at international prices. The real reason for such ridiculous gas prices - almost free - are massive subsidies sustained for decades. Despite the international price the government pay for gas, they sell it to people at very low price to avoid riots, protests and an economic and social out break. In 1989 under very bad economic conditions the government "dare" to raise the price and deadly riots ocurred with more than 3.000 people died or disappeared. Since then no one dare to touch the gasoline prices and the subsidies are more $ 12 billion per year. I call it populism as that is the cost - one of them - of keeping the people's support. I hope this information help, I know it sounds unbelievable but it is the sad truth. I will posting more about my "magical" country. :)

RE: ¡Hello Steemians!

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