Zoe Papadakis – August 8, 2018
One U.S. dollar will buy you nearly 925,000 gallons of gasoline in Venezuela, which may sound like a dream come true, but the harsh reality is that the country is facing possibly the worst economic crisis in modern history, The Drive reported.
For five years Venezuela has been locked in a brutal recession, with hyperinflation of the Venezuelan bolivar approaching 1 million percent.
Foreign exchange reserves have fallen by about $2.5 billion in the past few months while the government has defaulted on most of the outstanding bonds, which are estimated to amount to $60 billion, Business Insider noted.
The situation is dire.
Venezuelans are starving amid food shortages, Reuters reported, and now the government of President Nicolás Maduro is losing support after his alleged attempted assassination over the weekend.
Venezuela has held on to its fuel subsidies that have made it one of the cheapest places to buy gas and, as The Drive noted, for years a tank of 91-octane fuel has cost less than a bottle of soda.
Fuel retail price covers less than 5 percent of the cost of production and the remainder has to be made up by the government.