For Venezuela, the magic land of cheap gas, a big hike

Unlimited access to virtually free gasoline has become something of a Venezuelan birthright over the years, and raising prices is considered the third rail of Venezuelan politics. Deadly riots broke out in 1989 at the mere possibly of a price hike. Not even Hugo Chávez, who died last March after 14 years in power, dared to mess with the pumps.But with annual inflation topping 50 percent and the government burning through hard-currency reserves at a furious pace, Chávez’s handpicked successor, Nicolás Maduro, appears to have no choice. The government is spending more than $12 billion a year to subsidize domestic gasoline sales, Venezuelan energy officials say, and the gravy train is coming off the rails. More...