Venezuela in dilemma over hiking world's cheapest fuel

[Zorro]

President Nicolas Maduro is mulling a politically risky move to raise highly subsidized gasoline prices in Venezuela for the first time in 17 years, but may be put off for now by fears of a social backlash.

With 95 octane gas on sale for less than two U.S. cents a liter most motorists can fill up for under $1 - less than a small bottle of drinking water. Pump attendants often end up with a bigger tip than the cost of the fuel.

Subsidizing the world's cheapest gasoline costs the South American OPEC member about $12.5 billion a year, the government says.

With its finances reeling and generous welfare programs to fund, the socialist government has for months been preparing Venezuelans for a hike of the almost laughably low prices at the pump. Ministers and state media have been constantly mentioning the possibility, while the ruling party has been debating it.

http://news.yahoo.com/venezuela-dilemma-over-hiking-worlds-cheapest-fuel-134632002--finance.html

It needs to be done, but it's probably all over for Maduro when he does increase the price at the pump.

[COLGATE4]

1. Hiking the price of gasoline has always been the

third rail in Venezuela. Just rumors of it are enough to get buses burned and riots in the street. Good luck to Maduro if he tries it - the only result will be a huge mess and President Diosdado.