2016: President Maduro Raised the Price of Gasoline by 6000%

In Venezuela, the official price for gasoline was set at a very low rate for many years. Venezuelans viewed cheap gas as a birthright. An overnight attempt by President Carlos Andres Perez to raise gasoline prices in 1989 led to extensive rioting. The official price for premium gas was raised to 10 centavos/liter in 1996. The price remained unchanged under Hugo Chavez’s Presidency (1999-2012). Despite his popularity, Chavez viewed increasing the price of gasoline as politically risky.

Gasoline sales generate revenue for the Venezuelan National Government. Gasoline is produced in domestic refineries owned by the Government and distributed to gasoline stations. About 1600 gas stations are owned by the state oil company (PDVSA).

Worldwide oil prices declined by 70% between mid-2014 and 2016 which created an income shortfall for the Government since 80% of the Government’s income came from oil export sales. President Maduro began to discuss the idea of raising gasoline prices in 2014 and the issue was discussed throughout 2015. Ministers and state media constantly mentioned the possibility.[1] It was seen as a politically risky move that could cause social unrest and drive many middle-class voters to support the opposition.

On February 17, 2016, Maduro announced that the official price of premium gas would rise from 10 centavos/liter to 6 Bolivars per liter, an increase of 6000%. [3][4] Maduro said “This is a necessary measure, for which I assume the responsibility.” [3] He affirmed that the price increase was the product of consultation with community councils and grassroot forums. He explained that the increased revenue as a result of an increase in the gas price would be used to fund the government’s social missions such as housing, health services and education, which would benefit the population. Venezuelan gasoline was still the cheapest in the World.

The price of diesel was not affected by the price increase which meant no worry of an increase in transport prices. The raise was welcomed by environmental groups who claimed that the extraordinarily low prices for gasoline inhibited a culture of efficiency and energy saving. [2]



1.     VOA, Venezuela in Dilemma Over Hiking World’s Cheapest Fuel, September 10, 2014.

2.     Venezuelanalysis, Venezuela’s Maduro Announces String of Emergency Economic Measures, February 19, 2016.

3.     BBC, Venezuela raises petrol price for first time in 20 years, February 18, 2016.

4.     CNN, Venezuelans face a 6000% hike in gasoline price, February 18, 2016.

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