Venezuela now has the world’s second-cheapest petrol, priced at just $0.03 (approximately Rs. 8.4) per liter, trailing only Iran, which holds the top spot for the lowest fuel prices. This is a direct result of the country’s extensive government subsidies on fuel, which are designed to alleviate the financial burden on Venezuelans amidst the nation’s ongoing economic crisis. Despite Venezuela’s vast oil reserves, the country has been facing severe economic instability, including hyperinflation, a decline in oil production, and international sanctions, which have put immense pressure on its economy.
While these subsidies provide immediate relief to citizens, they also come at a significant cost, draining valuable resources from other essential sectors like healthcare and education. The heavily subsidized fuel prices create inefficiencies within the domestic oil market, as there is little incentive to modernize the energy sector. Despite the challenges, Venezuela’s low petrol prices continue to highlight the stark contrast between countries that rely on heavily subsidized fuel and those affected by market-driven price hikes due to global economic shifts.
