Oil dependent Venezuela is one of several petro-economies facing an economic crunch as the price of crude oil takes a beating on the international market.
Despite declaring an economic emergency last year, Venezuela’s economy continued to struggle, with inflation reaching record rates.
Venezuela has announced a steep increase in the price of petrol, making it the first time in 20 years that Venezuela has raised prices from under 0.1 bolivars per litre to six bolivars.
President Nicolas Maduro also announced a currency devaluation and said in a televised address “This is a necessary action, for which I take responsibility,”
Venezuela, with one of the largest reserves of oil in the world is suffering from an overdependence on oil from which it earns almost all of its foreign exchange