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Title: Chavez offers cheap gas to poor in U.S.
Source: cnn
URL Source: http://www.cnn.com/2005/WORLD/ameri ... havez.gasoline.reut/index.html
Published: Aug 24, 2005
Author: unk
Post Date: 2005-08-24 00:42:19 by tom007
Keywords: Chavez, offers, cheap
Views: 115
Comments: 12

Chavez offers cheap gas to poor in U.S.

HAVANA, Cuba (Reuters) -- Venezuelan President Hugo Chavez, popular with the poor at home, offered on Tuesday to help needy Americans with cheap supplies of gasoline.

"We want to sell gasoline and heating fuel directly to poor communities in the United States," the populist leader told reporters at the end of a visit to Communist-run Cuba.

Chavez did not say how Venezuela would go about providing gasoline to poor communities. Venezuelan state oil company PDVSA owns Citgo, which has 14,000 gas stations in the United States.

The offer may sound attractive to Americans feeling pinched by soaring prices at the pump but not to the U.S. government, which sees Chavez as a left-wing troublemaker in Latin America.

Gasoline is cheaper than mineral water in oil-producing Venezuela, where consumers can fill their tanks for less than $2. Average gas prices have risen to $2.61 a gallon in the United States, according to the U.S. Energy Information Administration.

Chavez said Venezuela could supply gasoline to Americans at half the price they now pay if intermediaries who "speculated ... and exploited consumers" were cut out.

Venezuela supplies Cuba with generously financed oil and plans to help Caribbean nations foot their oil bills.

Chavez, in Cuba to attend the graduation of Cuban-trained doctors from 28 countries, was seen off at the airport by Cuban President Fidel Castro. Washington has accused the two leaders of being a destabilizing influence in South America.

Chavez and Castro offered to give poor Americans free health care and train doctors free of charge.

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Begin Trace Mode for Comment # 3.

#2. To: tom007 (#0)

Gasoline is cheaper than mineral water in oil-producing Venezuela, where consumers can fill their tanks for less than $2.

As mentioned in the market wrap yesterday, this "cheap" gas is not a result of plentiful supply or low demand, rather it is government price controls. If Chavez wanted cheaper gas for poor Americans he could start with market prices in Venzuala.

purpleman  posted on  2005-08-24   6:07:59 ET  Reply   Untrace   Trace   Private Reply  


#3. To: purpleman (#2)

government price controls.

It's more like subsidies. And subsidies are the problem, not the solution.

Chavez need to see this http://www.normbook.homestead.com to get a handle on the creation of wealth by paying a fair price to raw material producers.

This works well with agriculture and other raw materials like timber and even coal and oil. The proof in in the pudding, so to speak and the book even offers a solution to our own economic woes.

The oil is a national resource in Venezuela, so it is technically owned by the people thru their agents in gov't. It is counterproductive to not have consumers pay a fair price. But tht is not where we are now with oil and gas as the soaring record profits of the oil companies proves out.

BTP Holdings  posted on  2005-08-24   12:30:13 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 3.

#4. To: BTP Holdings (#3)

The oil is a national resource in Venezuela, so it is technically owned by the people thru their agents in gov't. This is similar to the way Alaska treats their oil revenue.

Alaskans don't pay any state taxrs...

Alaskans Don't pay taxes? That North Slope oil belongs to all of Alaskans; therefore the money the oil companies pay in royalties and fees for the privilege of extracting and selling that oil, also belongs to Alaskans. To the extent that any of that money funds state government,they do pay state taxes.

Steppenwolf  posted on  2005-08-24 12:53:31 ET  Reply   Untrace   Trace   Private Reply  


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