[papabear]

Originally Posted by KJ3

even more shocking though was that venezuelan's pay 12 cents for a gallon. 12 CENTS.

Only because it is subsidized by the government thanks to relatively high taxes, but mainly it is paid for with profits from their national oil company.

But Venezuela is paying a price for cheap gasoline. State oil company Petróleos de Venezuela is footing an $11 billion a year bill for underwriting and subsidizing the fuel. That's nearly double its 2007 net income of $6.27 billion. The cost of that subsidy, along with money it pays to underwrite government social programs, has forced Petróleos de Venezuela to borrow billions on international markets to cover investments.

It is a major problem for them not only becuase of the strain it puts on their oil company, but any time they try to raise the prices it causes major riots. Chavez actually got famous during one of the gas increase riots.....and now he's desperately trying to raise gas prices. They also have major inflation problems.

Nothing is free.