Venezuela: Land of 12-cent gasoline

From Business Week

Global oil prices zoomed up to $135 a barrel this past week. But that doesn't worry Roberto Morales, a 33-year-old Venezuelan businessman. Morales, who drives a compact Volkswagen Gol, still pays only $1.32 to fill up his car with 11 gallons of high-octane gasoline, thanks to Venezuela's subsidized fuel price.

"This is crazy but I'm not complaining," says Morales. "Gasoline here is cheaper than water."

Comment: If countries like Venezuela, China, Saudi Arabia and many others ended their subsidizing of gasoline for their respective populations, I’m sure that it would curb global demand with current crude oil prices. Of course, that would also mean big problems for the ruling regimes in these countries. Let’s just say that subsidies for gasoline in these countries aren't going to be dropped anytime soon.