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Venezuela has the largest proven oil reserves in the world, yet its economy is in crisis. Motorists commonly wait for six hours or more in fuel queues, and car parts, engine oil, and tyres are prohibitively expensive. Despite this, fuel in Venezuela is extremely cheap, with petrol costing $0.50 per litre in 2025. However, due to the country's economic woes, the currency, the bolivar, is practically worthless, with inflation predicted to reach one million per cent. This has made it extremely difficult for Venezuelans to keep their vehicles on the road, and driving is nearly impossible for many.
| Characteristics | Values |
|---|---|
| Price of octane-95 gasoline | 0.84 Venezuelan Bolivar per liter |
| Average price of gasoline worldwide | 30.39 Venezuelan Bolivar per liter |
| Subsidized price for people with a valid Fatherland Card | 0.1 USD for the first 120 liters a month |
| Purchases above 120 liters per month | 0.50 USD per liter |
| Black market price during fuel shortages | Exceeds the average international price |
| Price of gasoline in June 2025 | $0.50 per liter |
| Planned increase in gasoline prices | 50% |
| New price of gasoline | $0.75 per liter |
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What You'll Learn
Venezuela has dirt-cheap fuel
Venezuela has the largest proven oil reserves in the world. However, due to faltering infrastructure, there has been a steep drop in oil production. Despite this, Venezuela has dirt-cheap fuel. In 2018, the price of fuel was practically free, but motorists found it challenging to keep their vehicles on the road due to a lack of replacement parts. The bolivar, Venezuela's currency, was practically worthless, with the IMF predicting that inflation would reach one million per cent by the end of 2018. As a result, parts were prohibitively expensive, if available at all. For example, a new tyre cost one billion bolivars, or $285 on the black market.
The availability of cheap fuel in Venezuela can be attributed to the country's socialist policies. Under Hugo Chávez, who began Venezuela's socialist revolution in 1999, numerous elections and a new constitution placed most government institutions under the control of the ruling Socialist party. Chávez's successor, Nicolás Maduro, continued these policies, leading to growing political authoritarianism and greater state dominance over the economy. However, expropriations, price controls, and mismanagement resulted in a contracting economy.
The Venezuelan government has attempted to address the issue of cheap fuel by implementing a fuel census. Car owners must use a government-issued "fatherland card" to log their vehicle and fuel consumption details online before completing the process at government offices. This has sparked fears of fuel rationing or further government control. In 2025, the government also planned a 50% increase in gasoline prices, from $0.50 to $0.75 per liter, to address the decline in oil revenues and attract new strategic partners.
While the price of fuel in Venezuela is low compared to international standards, it has a significant impact on the population, which has endured hyperinflation and a loss of purchasing power. Motorists commonly wait for six hours or more in fuel queues, and many struggle to afford routine maintenance for their vehicles. As a result, transport union leaders estimate that the country's fleet of 280,000 passenger buses has dwindled to just 30,000 in two years, forcing commuters to rely on flatbed trucks known as "dog-carts."
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Petrol shortages are common
Venezuela has the largest proven oil reserves in the world, with a total of 300 billion barrels as of 2014. Despite this, petrol shortages are common in the country. Motorists often wait for six hours or more in fuel queues. This is due to the country's faltering infrastructure, which has led to a steep drop in production. The US Energy Information Administration (EIA) predicted that oil production could fall to 1 million barrels per day (bpd) in 2018, and again to 700,000 by December 2019.
The economic crisis in Venezuela has rendered its currency, the bolivar, practically worthless. Hyperinflation has caused the price of gasoline to be cheaper than water. In dollar terms, a bottle of water costs more than a tank of gas. However, the government gasoline subsidies are no longer sustainable as Venezuela's economy continues to collapse. The country loses billions of dollars to smugglers who sell the gas in neighbouring countries at huge profits.
The primary reason for the petrol shortages is that vast quantities of petrol are smuggled out of Venezuela to Colombia or the Caribbean, where petrol sells for 3,700 times more. This smuggling is run by gangs controlled by or in partnership with the military. The value of the fuel smuggling business is estimated at $18 billion per annum, with a significant portion ending up in the hands of Venezuelan military officers.
The shortages in Venezuela are a feature of the system, where the ruling class can use goods in short supply as a political instrument of control. Elites benefit from the profusion of shortages, as they can sell goods at high prices on the black market and generate extra personal income. However, as the funds available to the regime decline alongside the collapse of the oil industry, the ability to profit from shortages is also diminishing.
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Motorists face long waits
Despite having the world's cheapest gasoline, motorists in Venezuela face long waits to fill up their tanks. In Caracas, drivers have to wait in line for up to six hours or more due to petrol shortages. The situation is similar in the capital city, where motorists endure day-long queues as gasoline is being rationed following a slump in output at state-owned refineries.
Venezuela has the largest proven oil reserves globally, but its production has seen a steep decline due to faltering infrastructure. The US Energy Information Administration (EIA) predicted that oil production could fall to 1 million barrels per day (bpd) in 2018 and further down to 700,000 by December 2019. This prediction came true, with domestic gasoline demand dropping to about 70,000 barrels per day in 2021 from 350,000 a decade ago.
The economic crisis in Venezuela has made it difficult for motorists to keep their vehicles on the road. Basic car parts like batteries, engine oil, and tyres are either unavailable or highly expensive. An elderly radiologist, Norma Gutiérrez, waited five hours in line outside a warehouse in Caracas to buy a replacement car battery. Similarly, a taxi driver from the city, Alexis Álvarez, struggled to afford the engine oil for his Chevrolet sedan, which cost 120 million bolivars.
The bolivar, Venezuela's currency, has become practically worthless due to hyperinflation. This has led to a unique barter system at gas stations, where motorists pay with goods like cigarettes, cooking oil, rice, and corn flour instead of cash. Despite the challenges, Venezuela has maintained its low fuel prices, with a full tank costing a tiny fraction of a US penny as of 2019.
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Vehicle maintenance is expensive
Venezuela has the largest proven oil reserves in the world, yet its economy is in crisis, and the country is facing a fuel shortage. The price of octane-95 gasoline is 0.84 Venezuelan Bolivar per litre, while the average price worldwide is 30.39 Venezuelan Bolivar per litre. In a country where one US dollar can buy two beers, a dozen eggs, or a bar of chocolate, fuel is practically free. However, due to the economic crisis, Venezuelans are struggling to afford ordinary foods, and motorists are finding it difficult to keep their vehicles on the road. Batteries, engine oil, and tyres are prohibitively expensive and often unavailable.
The cost of maintaining a vehicle can vary depending on the brand and model. Luxury vehicles tend to be more expensive to maintain and repair than domestic brands. For example, Mercedes-Benz models are more than twice as expensive to maintain as Lincoln models over ten years. Newer cars may also have higher maintenance costs, as many brands offer free maintenance periods and warranties on new cars. Once the warranty period ends, costs can skyrocket.
Routine maintenance, such as oil changes and tire rotations, can help extend the life of a vehicle and prevent costly repairs. However, these services can still be expensive, especially at dealerships. It is important to budget for unexpected repairs, as they can cost upwards of $1,000. An extended warranty can help cover the cost of more expensive repairs, such as suspension or engine replacement.
While vehicle maintenance can be costly, it is essential to keep your car in good working condition and ensure a safe driving experience. By choosing the right brand, budgeting, and practicing routine care, you can help reduce the overall cost of vehicle ownership.
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Fuel price increase impacts wallets
Venezuela has long been known for its dirt-cheap fuel, but in June 2025, the government announced a 50% increase in gasoline prices, which would see prices rise from $0.50 to $0.75 per liter. This change will have a profound impact on the wallets of Venezuelans, affecting transportation and trade costs.
Although the new gasoline price is still considered low compared to international standards, it will significantly affect the Venezuelan population, which has endured hyperinflation and a loss of purchasing power. The increase in fuel prices will be felt across the country, with a knock-on effect on the cost of living.
For Venezuelans already struggling with an economic crisis that has pushed ordinary goods out of reach, this added expense will stretch their finances even further. Motorists will feel the pinch, with the cost of fuel, maintenance, and vehicle repairs eating into their budgets.
The impact of the fuel price increase is expected to be widespread, affecting not just drivers but also commuters and businesses. With a dwindling fleet of passenger buses and a reliance on makeshift "dog-carts," the rise in fuel prices could further disrupt transportation services, making it harder and more expensive for people to get around.
The government's decision to raise fuel prices comes in response to the decline in oil revenues and the exit of foreign oil companies due to international sanctions. While this move may help attract new strategic partners, it will undoubtedly impact the wallets of Venezuelans, who are already facing economic challenges.
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Frequently asked questions
As of June 2025, fuel prices in Venezuela are expected to rise by 50% from $0.50 to $0.75 per litre nationwide.
Venezuela has the largest proven oil reserves in the world. However, due to faltering infrastructure, there has been a steep drop in oil production. This has resulted in petrol shortages and long queues at fuel stations.
Venezuelans have endured hyperinflation and a loss of purchasing power. The rise in fuel prices will impact transportation and trade costs, making it difficult for people to maintain their vehicles and commute.
