Venezuela's fuel price is rising. You will pay for gasoline in crypto.
Venezuela has announced that gas stations across the country will sell gasoline at a discounted price in exchange for the state-owned, oil-backed cryptocurrency, Petro.
However, this announcement goes hand in hand with the removal of local fuel subsidies, which will cause the price of gasoline to rise from almost zero to $ 0.02 per liter.
In the new gasoline system, Venezuelan car owners will be able to pour 120 liters of fuel per month on a car, at a price of around $ 0.02. Motorcyclists will be able to refuel 60 liters of gasoline per month.
With a monthly salary in Venezuela of about $ 3.61 a month plus the food premium of $ 2.89, the gas quota is 37% of the minimum wage along with the food premium.
Venezuela's new gasoline system will also introduce support for Petro payments at all gas stations in the country.
Payments will not be made via the Petro App, the only digital wallet that supports Petro, but via the national biometric payment system "Patria", developed by Venezuela's largest bank - which is currently not compatible with the Petro app. This can be a problem for people looking to pay for fuel with a government cryptocurrency.
Venezuelans will only be able to refuel at $ 0.02 / liter if they have a special card. If they do not have it with them or want to refuel more than the limit, they will have to pay $ 0.50 per liter.
Drivers of state-owned vehicles still have access to free gasoline. This creates an easy opportunity to sell gasoline on the black market. Reports indicate that on Venezuela's black market, gasoline costs as much as $ 4 a liter.
Despite being one of the oil-richest countries in the world, mismanagement and the collapse of refineries, and severe US sanctions have led to gasoline shortages across Venezuela.