Why Is Gasoline So Cheap In Venezuela?

[Good-Person]

Venezuela is a country what has been facing its worst economical crisis right now. The fact remains that it is one of the countries where inflation has skyrocketed and it never seems to cool down. However, despite suffering from some of the major economical problems, gasoline is quite cheap in there. Some have stated that it has many oil reserves, so do you think that importing gasoline from there could be a good decision?

 

[Grant]

I think you answered your own question, they have many oil reserves, and could probably afford to sell it for less than in many other locations. Importing it may be a problem, as they could request any amount they want. The US has their sources I imagine, but I don't how you'd import it to the states or other countries.

 

[Nomad]

Venezuela is one of the biggest oil producers, therefore, local oil prices are pretty low. However, just because oil is cheap in Venezuela does not mean you will be able to import oil for a cheap price from Venezuela. Oil prices are fixed by OPEC, and countries cannot sell for less than the price maintained by OPEC. The organization even determines how much crude oil should be pumped out.

 

[Good-Person]

I think you answered your own question, they have many oil reserves, and could probably afford to sell it for less than in many other locations. Importing it may be a problem, as they could request any amount they want. The US has their sources I imagine, but I don't how you'd import it to the states or other countries.

Venezuela has huge oil reserves. However, the country is still facing many challenges related to economy. Our country, on the other hand, imports petrol from other countries and this is why the price of petrol is so high. In many countries, petrol could be quite cheap. It all depends on how many oil reserves they have.