Venezuela refuses to hike fuel price despite China

Venezuela will not hike its domestic gasoline price, the South American country's energy minister said, after an increase in China caused world oil prices to fall on Thursday. The minister, Rafael Ramirez, also told reporters that despite record oil prices that worry consumer nations, Venezuela believes the market has sufficient oil to meet demand. 'There is no need for more oil in the market,' he said. Amid concern over tight supplies, economists have noted how gasoline subsidies in oil-producing countries help increase world demand, adding to market problems.
On Thursday, China unexpectedly raised retail gasoline and diesel prices by up to 18 percent, sending world oil prices tumbling as Beijing moved to temper demand at the risk of stoking domestic angst over decade-high inflation. Venezuelan consumers typically assume cheap fuel is a national right in a country with some of the largest oil reserves outside the Middle East. Gasoline can be cheaper than bottled water. Raising gasoline prices is a sensitive political issue in the OPEC nation and has in the past caused deadly riots. The socialist government of President Hugo Chavez said it would study a possible increase last year but has refused to raise prices.