Venezuela to ask airline companies pay for kerosene with Petro

Latest

Nicolas Maduro expressed in his annual discourse before the national public oil company of the country that from now on the airline companies will have to pay for kerosene with Petro, the national cryptocurrency of Venezuela.
The President of Venezuela is trying for some time already to establish Petro as the main payment method in the South American country in order to shield the economy from the financial sanctions imposed by the United States.
According to the latest indications received from the country’s eccentric President, the local authorities will impose airline companies flying on international routes the mandatory request to pay for kerosene with Petro.
We have to recall that Petro is a state-run cryptocurrency that is backed up by the large oil resources of Venezuela in an attempt to escape the American sanctions that have affected the national economy. It is well known that the traditional Bolivar currency lost most of its value leaving people broke.
With the new law in place, the airline companies will be able to purchase kerosene using the PetroCard which allows the exchange of international currencies into Petro, including the US dollar.
For the moment, the local legislators are still working on the draft of the law and it’s difficult to say if the final version will include all airports in the country and the domestic flights.
Though in the last year the local government tried to make Petro as popular as the traditional fiat currency, at this moment only about 400 firms and companies in Venezuela accept the national cryptocurrency in exchange for products and services.
To encourage people in Venezuela use Petro and access the PetroApp payment platform, the government offered public servants and soldiers a bonus in Petro. However, the adoption rate doesn’t seem to increase as fast as the authorities want.
Starting from 2018, the President of Venezuela demanded the public oil company to use Petro for purchase and sale purposes in order to connect the oil production of the country with the national cryptocurrency.
In addition to oil, the government in Venezuela declared that authorities would start accepting Petro from its citizens for public administration fees. The American administration has not yet adopted a public position on Venezuela’s attempt to avoid sanctions via Petro.

Leave a Reply

Your email address will not be published. Required fields are marked *