Another downside of VZ new currency depreciation? The price of gas to increase over 800%
Gasoline would increase minimum 833% on 4-J
The million dollar question: how do you lose three zeros to the price of gasoline? The doubt that goes around in the heads of millions of Venezuelans since Thursday night is understandable, given that the 91 octane gasoline is only Bs. 1 per liter, while the 95 octane gasoline is Bs. 6 per liter. That is, the fuel cost of 95 would pass to Bs 0.006 and Bs 0.001, that of 91.
In a specific case, fill a tank of 50 liters would be Bs. 0.05 if it is 91 octane and Bs. 0.3 if it is 95, but the point is that the lowest denomination coin that contemplates the new cone monetary value is Bs. 0.50. If so, there would be no possibility of giving the corresponding change or change.
In any case, the logical solution points to rounding, experience that Venezuelans already lived in 2008, when the first monetary conversion took effect. When this measure is applied,
the inevitable way will be to raise the price of gasoline to adjust to the conversion.
Economist Tamara Herrera told the AP that, in general, the government "is going to have to increase because many regulated goods are below the current value if you take away the three zeros."
The denominations include the 0.5 and 1 bolívar coins and the 2, 5, 10, 50, 100, 200 and 500 bolívares bills.
For the economist Luis Oliveros, in the announcement of the Sovereign Bolivar, "there is no surprise", and maintains that it is a new monetary reform that already involves the elimination of six zeros since 2008. In hyperinflation, "that is losing money if not there is an anti-inflationary and stabilization plan, "he said on Twitter @ luisoliveros13.
The expert argues that "with the monetary reconversion, it seems that the price of gasoline has just increased by 833% by June 4". As of that date, it will cost 0.006 and if the lowest currency is 0.50, how much is the minimum that the liter can carry? ".
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http://www.panorama.com.ve/politicayeconomia/Gasolina-aumentaria-minimo-un-833-el-4-J-20180323-0119.html
Chavist symbolism for yet another win. Hyperinflation at 13,000% in 2018? What a quaint notion... that number was BEFORE the currency reform!
