This is topic Energy Crisis? Venezuela gas is cheaper than water! in forum General Talk at Northern California Ford Owners  .


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Posted by Cobra5.0Jeep (Member # 1482) on :
 
CARACAS, Venezuela (Reuters) - Taxi driver Jaime Tinoco works the streets of Caracas in a 1976 Chevy Nova that guzzles 19 gallons (72 liters) of gas a day. But he doesn't worry about fuel efficiency -- filling his tank costs just

$2.30.

While U.S. consumers struggle with soaring energy prices, Venezuela's gas is now the world's cheapest at 12 cents a gallon and Washington's regional foe, President Hugo Chavez, vows to maintain subsidies that keep fuel dirt-cheap.

"Those gringos have everything -- so why does their gas cost so much?" asked Tinoco between chuckles as he navigated a midday traffic jam. "Don't they have oil reserves?"

Chavez, a self-proclaimed socialist and critic of
President Bush, has even begun subsidizing fuel for poor U.S. neighborhoods as U.S. consumers brace for average summer gas prices of $2.71 a gallon -- 34 cents higher than last summer.

In Venezuela, the world's No. 5 oil exporter, drivers fill their tanks for less than the price of a cheap breakfast, and love to point out that gasoline costs less than mineral water.

The nation's gasoline is now the world's cheapest, according to an
International Monetary Fund report released in April that shows Venezuelan gas prices as about a third of those in oil-producing giant Saudi Arabia.

Shiny SUVs and rusty 1970s-era sedans share the streets of Venezuelan cities as drivers shrug off fuel costs.

Low-priced fuel is considered a birthright in Venezuela, which sells 1.2 million barrels per day of oil to the United States -- the world's biggest gas guzzler.

"Gasoline should stay cheap the way it is, that's why we have oil in Venezuela," said Maria Rosa Pinero, 55, a housewife, filling up a Volkswagen Gol at a gas station in eastern Caracas.

Chavez has extended Venezuela's fuel subsidy to poor Americans through a well-publicized jab at the U.S. government that offers 40 percent discounts on heating oil distributed by Venezuelan-owned refiner Citgo.

Flush with cash from high oil revenues, Chavez has also shored up regional alliances by providing low-priced fuel to Central American and Caribbean nations he says have been snubbed by the United States.

'HOOD ROBIN' SUBSIDY

Venezuela's gas subsidy is the subject of endless grumbling by economists who say it promotes consumer waste and costs the state billions of dollars in lost revenue.

Critics say the subsidy largely benefits middle and upper-class vehicle owners at the expense of government income that could be spent on the poor.

"They call it the 'Hood Robin' subsidy," said Jose Luis Cordeiro, a petroleum engineer who writes about energy issues. "Instead of stealing from the rich to give to the poor, it's the opposite."

He estimates Venezuela would have taken in at least an additional $8 billion last year -- almost 8 percent of the nation's
GDP -- if Venezuelans had paid market rates for fuel.

The subsidy also encourages rampant fuel smuggling to neighboring Colombia and leads to huge lines of Brazilian drivers waiting to fill up along the southern border.

But past efforts to raise gas prices have not gone well. Authorities in 1989 raised fuel prices at the height of a recession, leading to three days of rioting during which at least 300 people were killed. Human rights groups say troops may have killed several thousand people.

The event marked a turning point in Venezuelan history, and served as inspiration for Chavez -- at the time a young army officer -- to lead a coup attempt three years later. The coup failed but helped propel Chavez into the presidency in 1998.

Chavez has maintained popularity by channeling oil revenues toward social programs for the poor, and has often criticized U.S. dependence on cheap gasoline. Washington says he is using his oil wealth to threaten regional democracy.

At Venezuelan gas stations, however, there are few complaints about low-cost fuel or fuel efficiency.

"People buy a car because it's comfortable or because it's big," said Isidro Rodriguez, 30, an accountant, as he filled up a new 4-wheel-drive Ford in southern Caracas. "It's not for the price of fuel, because that's never been a problem."
 

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Posted by 98slowhoe 'FIFTYLX' (Member # 895) on :
 
WOW, thats all I have to say. It has never maid much sense to me why its like that. But on the other hand how much money do they get paid compared to americans? Whats the inflation difference compared to America?
 

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Posted by CLEEN 50 (Member # 5867) on :
 
Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet
 

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Posted by TRIXSNK (Member # 2844) on :
 

quote:

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Originally posted by 98slowhoe 'FIFTYLX':
WOW, thats all I have to say. It has never maid much sense to me why its like that. But on the other hand how much money do they get paid compared to americans? Whats the inflation difference compared to America?

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When i hear stuff like this i ask myself how is the average persons quality of life over there in comparison to ours??
 

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Posted by Cobra5.0Jeep (Member # 1482) on :
 
Well since that taxi driver was driving in a traffic jam it sounds like a lot of people can afford cars.
 

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Posted by onesicklx (Member # 285) on :
 
venezuela is a oil producing country, so it does not surprise me...
 

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Posted by 2stangs69-91 (Member # 1951) on :
 
The USA is a oil producing country
 

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Posted by FoRdGiRl (Member # 6279) on :
 
I SAW TWO DIFFRENT SHOWS ABOUT THAT AND ONE AWHILE BACK HOPEFULLY WE GET THAT GOING OUT HERE SOON BC I KEEP HEARING PEOPLE SAY GAS IS GONNA BE LIKE 4 OR 5 DOLLARS SOON AND THATS AND THEN WE WILL ALL HAVE TO REALLY GET HONDAS OR SOMETHING
 

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Posted by 98slowhoe 'FIFTYLX' (Member # 895) on :
 

quote:

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Originally posted by 2stangs69-91:
The USA is a oil producing country

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quote:

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Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet

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It would work over here. Nothing has to be changed to our cars or pumps. What wouldn't work is the giant oil companies going along with it. If you saw ethanol plants starting to open to produce, the oil companies would make the price of gas plummet and cause the ethanol plants to shut down. Then, up go the prices. I don't complain about the prices though, I could always walk to work. 58 miles
 

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Posted by Cobra5.0Jeep (Member # 1482) on :
 

quote:

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Originally posted by FoRdGiRl:
I SAW TWO DIFFRENT SHOWS ABOUT THAT AND ONE AWHILE BACK HOPEFULLY WE GET THAT GOING OUT HERE SOON BC I KEEP HEARING PEOPLE SAY GAS IS GONNA BE LIKE 4 OR 5 DOLLARS SOON AND THATS AND THEN WE WILL ALL HAVE TO REALLY GET HONDAS OR SOMETHING

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quote:

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Originally posted by CLEEN 50:
Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet

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Ethanol.. what a concept. It's been around for a long time even in the US but never caught on here. They are actually starting to blend ethanol into gas now instead of the MTBE bullshit. Ironically they are blaming the rising gas prices (in part) on an ethanol shortage

What will they come up with next

Check this shit out http://www.svo-kit.com/technology.php
 

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Posted by CDT (Member # 5004) on :
 

quote:

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Originally posted by 5OHS5OH:

quote:

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Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet

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It would work over here. Nothing has to be changed to our cars or pumps. What wouldn't work is the giant oil companies going along with it. If you saw ethanol plants starting to open to produce, the oil companies would make the price of gas plummet and cause the ethanol plants to shut down. Then, up go the prices. I don't complain about the prices though, I could always walk to work. 58 miles

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quote:

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Originally posted by CDT:

quote:

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Originally posted by 5OHS5OH:

quote:

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Have you heard that in Brazil they are using ethanol for gas made from the sugar cane fields. The US is trying to find out if it would work over here. Brazil is one of the only countries that does not buy oil from oversees. if this works, the oil industry would plummet

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It would work over here. Nothing has to be changed to our cars or pumps. What wouldn't work is the giant oil companies going along with it. If you saw ethanol plants starting to open to produce, the oil companies would make the price of gas plummet and cause the ethanol plants to shut down. Then, up go the prices. I don't complain about the prices though, I could always walk to work. 58 miles

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that's not true, to get the same power you have now you would need 2-3 times more ethanol than gasoline. So your mileage will plummet, and your fuel system would need to be upgraded. It is also very corrosive pumps have been known to fail very rapidly. E85 stations are all over the east and Midwest. Which is still 15% gas. The government really has no reason to lower prices, they are making more money too. We pay something like $.50 plus sales tax per gallon.

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