Venezuela on Monday launched a fuel pricing system that largely rolls back decades of heavy subsidies, creating long lines and leaving drivers confused as the government seeks to end chronic shortages with gasoline imports from Iran.
People queue for fuel at a gas station after Venezuela's government launched new fuel pricing system, in Caracas, Venezuela June 1, 2020. REUTERS/Manaure Quintero
Maduro on Sunday created a two-tiered system in which drivers can buy up to 120 liters per month in local currency for the equivalent of $0.02 per liter, but have to pay $0.50 per liter above that amount.By 9 a.m. several stations in Caracas remained closed as staff and security forces meant to oversee the distribution awaited instructions from state-run oil company Petroleos de Venezuela [PDVSA.UL], known as PDVSA.
PDVSA President Asdrubal Chavez acknowledged there were “still things we need to fix in this process.” After an initial 90-day introductory period, motorists wishing to benefit from the subsidy must pay with a 'Fatherland Card' affiliated with the system. Rights groups have raised concernsLines snaked around blocks at many stations in Caracas, even at those offering more expensive gasoline in dollars.
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