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1 US Dollar Will Buy You 925,000 Gallons Gasoline in Venezuela

1 US Dollar Will Buy You 925,000 Gallons Gasoline in Venezuela

Drivers line up to pump fuel at a gas station in Caracas, Venezuela, on July 30, 2018. (Federico Parra/AFP/Getty Images)

By    |   Wednesday, 08 August 2018 02:27 PM

One U.S. dollar will buy you nearly 925,000 gallons of gasoline in Venezuela, which may sound like a dream come true, but the harsh reality is that the country is facing possibly the worst economic crisis in modern history, The Drive reported.

For five years Venezuela has been locked in a brutal recession, with hyperinflation of the Venezuelan bolivar approaching 1 million percent.

Foreign exchange reserves have fallen by about $2.5 billion in the past few months while the government has defaulted on most of the outstanding bonds, which are estimated to amount to $60 billion, Business Insider noted.

The situation is dire.

Venezuelans are starving amid food shortages, Reuters reported, and now the government of President Nicolás Maduro is losing support after his alleged attempted assassination over the weekend.

Venezuela has held on to its fuel subsidies that have made it one of the cheapest places to buy gas and, as The Drive noted, for years a tank of 91-octane fuel has cost less than a bottle of soda.

Fuel retail price covers less than 5 percent of the cost of production and the remainder has to be made up by the government.

The government has printed more money, fueling more inflation, and while prices in all other industries have risen, the price of gas remains low.

A strong black market for U.S. currency means that you could essentially buy thousands of gallons of gas for a dollar.

But something has to give.

President Maduro recently announced a move toward managing its fuel supply, The Drive noted.

This began with the car census, a campaign that allows the government to establish the fuel usage rates among the general population.

Venezuela regularly faces fuel shortages, The India Times reported.

The census requires car owners to use government issued cards to register their details and log their gas consumption online.

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One U.S. dollar will buy you nearly 925,000 gallons of gasoline in Venezuela, which may sound like a dream come true, but the harsh reality is that the country is facing possibly the worst economic crisis in modern history.
gasoline, venezuela, dollar, gallons
313
2018-27-08
Wednesday, 08 August 2018 02:27 PM
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