Venezuela set to increase significantly natural gas prices as you continue to phase out the fuel subsidies looking for income.
The country’s Ministry of Petroleum plans triple fuel prices, its first increase in more than a decade, after years of hyperinflation that reduced the price to almost nothing, according to people with knowledge of the matter. PDVSA declined to respond to a request for comment.
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Companies and factories that use gas as fuel for furnaces, boilers and heaters will pay $3.3 per million British Thermal Units (BTU) from a previous price of $1.13 per million BTU, or $2.48 per cubic meter. This would be the second fuel increase planned by the government after announcing a rise in diesel prices for industrial purposes on July 6.
The government significantly increased gasoline and diesel prices for the last time in 2020 after reversing a decades-old policy of subsidies for drivers and public transport that made Venezuela’s fuel one of the cheapest in the world. Despite having the world‘s largest crude reserves, Venezuela’s refineries are unable to meet domestic demand for fuel due to years of divestment, mismanagement and US-imposed sanctions.
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As part of this new scheme, PDVSA’s gas subsidiary approached medium and large companies to discuss new supply contracts, which from now on will be counted in US dollarsthe people said.
PDVSA is the only supplier of gas for heating and cooking in the country. It supplies more than 89% of customers with propane, which is delivered in cylinders. Less than 10% receive natural gas, which is sent directly to homes and businesses through pipelines.