Venezuela to sell cheap oil

2005-11-19 13:09

Caracas - Venezuela will soon be selling heating oil to poor communities in the United States cities of Boston and New York - at discount prices.

The move follows a promise by Venezuelan president Hugo Chavez to help poor Americans cut energy costs.

According to Citgo, a subsidiary of Venezuela's state-owned oil company, the company will offer fuel at discounted rates in Boston, Massachusetts, as early as next week.

The company has said that the first phase of the programme, that of Boston, will offer up to 4.5 million litres of heating oil at accessible rates, representing $10m (R68m) in savings.

Heating oil will later be sold in the Bronx, one of New York's poorest boroughs. Chavez visited the Bronx in September. Two weeks later he said Citgo was willing to provide oil to communities there.

Citgo said the distribution of discounted heating oil will be organized with the help of local non-profit organisations.

The company runs about 16 000 gas stations in the US.

Chavez often blames the plight of the poor on unbridled capitalism. The former para-troop commander strongly criticises the administration of US president George W Bush for failing to reduce poverty in the US.

Although tensions between the US and Venezuela have increased since Chavez's election in 1998, the oil-rich South American country remains a major supplier of fuel to the US.

Chavez offered cheap heating oil for poor US communities in August, following a meeting in Caracas with the Rev Jesse Jackson.

Venezuela has the largest oil and natural gas reserves outside the Middle East. It is the world's fifth most important oil exporter and a founding member of the organisation of petroleum exporting countries.

- AP