VENEZUELA

Venezuela hikes petrol prices sixty-fold
President Maduro devalues currency and hikes
petrol prices for first time in decades in attempt
to shore up economy.

The first fuel price hike in nearly 20 years will
increase the cost of petrol by at least 1,329
percent.

Venezuela's president announced a currency
devaluation and ramped up its petrol prices for
the first time in about 20 years on Wednesday in
an attempt to shield the country's oil-dependent
economy from collapse.

President Nicolas Maduro announced that the
pump price of premium gasoline would jump
from just under 0.1 bolivars per litre to six
bolivars (1.5 US cents to 95 cents) - a 60-fold
increase from its current level.

"This is a necessary action, for which I take
responsibility," Maduro said in a televised
address.

"The time has come to establish a system that
guarantees access to hydrocarbons at a fair
price but that also guarantees the funding of
investment in producing that gasoline."

Maduro also announced that the strongest of the country's official exchange rates, used for
essential goods like food and medicine, would
weaken to 10 bolivars per US dollar from 6.3.

Venezuela has the biggest known oil reserves in
the world and has been practically giving
gasoline away in recent years. But it has
suffered from plunging world oil prices since
mid-2014.

Sparking protests

The move risks sparking protests in a volatile
country where citizens are struggling with
soaring inflation and shortages of basic goods
such as cooking oil and toilet paper.

A petrol price increase in 1989, which came at a
time of economic crisis driven by low oil prices,
spurred popular outrage that erupted into days
of rioting that killed hundreds.




For more: www.aljazeera.com/news/2016/02/venezuela-hikes-petrol-prices-tackle-economic-crisis-160218042536706.html

Seems Nigeria is weathering the storm a lot better than other oil dependent countries, yet PDP supporter no go let us see road. Imagine hiking the price of petrol by over 60% in today's Nigeria!!

Putting this into perspective, they hiked the price to over 300Naira.


Cc: Lalasticlala, Mynd44.

Diversification with Good power supply will encourage local Manufacturing Industries

@Op, correct your title. It is 60 fold, not 60%. That is over 5000%.
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Nigerians should brace up for increase in fuel prices and resultant high inflation, once the government bows to the pressure of devaluation. I'm actually more worried about the instability that will arise due to organized labour embarking on industrial action and calling for wage increase to counterbalance the effect of devaluation/inflation on REAL wage.

Bevista:
@Op, correct your title. It is 60 fold, not 60%. That is over 5000%.
---
Nigerians should brace up for increase in fuel prices and resultant high inflation, once the government bows to the pressure of devaluation. I'm actually more worried about the instability that will arise due to organized labour embarking on industrial action and calling for wage increase to counterbalance the effect of devaluation/inflation on REAL wage.

By bad. You are actually right.

The more serious reason that real diversification should be quickened and not just playing mere rhetorics as is the case now.

Iroh88:

Seems Nigeria is weathering the storm a lot better than other oil dependent countries, yet PDP supporter no go let us see road. Imagine hiking the price of petrol by over 60% in today's Nigeria!!
Putting this into perspective, they hiked the price to over 300Naira.
Cc: Lalasticlala, Mynd44.

Op thats actually 6000%

Sometimes I keep wondering what will happen in Nigeria is we finally succumb and devalue, petrol prices will suddenly skyrocket to about N140/litre and it's either a massive protest starts again across the nation or the FG will be forced to resume payment of subsidies. Obviously the price of all imported commodities from rice to tomato paste will also double. God help us!

obailala:

Op thats actually 6000%

Sometimes I keep wondering what will happen in Nigeria is we finally succumb and devalue, petrol prices will suddenly skyrocket to about N140/litre and it's either a massive protest starts again across the nation or the FG will be forced to resume payment of subsidies. Obviously the price of all imported commodities from rice to tomato paste will also double. God help us!

there is no easy way out. The only painful thing is the wastefulness of govt at this austerity time. Why welfarist package when there is no money? The 500bn naira is 1st a misplacement and a sadly a conduit of corruption!