The Venezuelan government has announced that petrol stations across the country will sell petrol at a reduced price in exchange for the country’s state-issued, oil-backed crypto, the Petro. The government has also announced to remove the petrol subsidies that will see the price of gasoline spiking from close to nothing to $0.02 per liter. The country has been pushing the adoption of its state-backed cryptocurrency Petro for a long time. The country has been suffering from hyperinflation for a long time and is facing several sanctions from the USA and the UN.
Venezuela removes subsidies on petrol.
In the midst of acute petrol shortages, June 1 saw Venezuela remove subsidies on gasoline prices. The new petrol regime will see Venezuelan car-owners allotted 120 liters per month at roughly $0.02. The new rules only allow motorists two full tanks worth of petrol for approximately $1.20 each month. Motorcyclists will receive 60 liters of petrol per month, according to reports. The South American country’s new petrol regime will also see support for Petro payments launched across gas stations.
The Petro App cannot be used to make the payments.
The payments cannot be made using the Petro App, the sole digital wallet that supports the Petro, but by using the country’s ‘Patria’ biometric payment system developed by Venezuela’s largest bank, which is not currently compatible with the Petro app. The government also made a controversial decision to locate the subsidized petrol who possesses the country’s “Fatherland Card,” an ID card that has been criticized as a manifestation of totalitarian control, with many citizens choosing not to apply for the card. Petro cryptocurrency has been banned in the United States.
The country has been suffering from hyperinflation for a long time, and the recent historic crash in the oil price made it worse for countries like Venezuela, whose economy runs on oil sales. Millions of people have left the country because of the ongoing hyperinflation in the country.