Food price regulation has returned in Venezuela, but this time in Petro

In view of the country’s high inflation, the Venezuelan government has introduced a price regulation for 27 foods in the basic basket with amounts in Petro and Bolivar. But it doesn’t reach the salary.

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Last week, Venezuela’s Vice President of the Economic Area, Tareck El Aissami, announced that petro staple prices would be agreed with petro businessmen. The listing includes beef, pork, chicken, tuna, sardines, milk, mortadella, milk, flour, pasta, cereals, eggs and products such as oil, sugar and salt. Does not contain fruit or vegetables.

For example, the prices for various types of meat range from 0.008495548 petros, which corresponds to 85,171.00 bolívares for one kilo of pig’s feet, or 0.00849548 petros (85,171 bolívares) for one kilo of sardines; up to 0.06456564 petros, corresponding to 647,299.60 bolívares, for one kilo of first-class beef.

The value in Bolivar is subject to the official exchange rate of 171,072.85 Bolivar per dollar on April 27 this year by the Central Bank of Venezuela (BCV).

The aissami indicated this “The prices are set in petros to prevent them from becoming out of date and devaluing the bolivar.” For reference, use the official value of the listed oil of nearly $ 60 at the official exchange rate recognized by the Central Bank of Venezuela and at the Petro calculator on his official site. However, this is far from being equated with a process of real supply and oil demand on the international market.

New price regulation in Petro calculated

On the Twitter user of the National Association of Cryptocurrencies, @AsonacripVEyou can read the full list of food prices. If the price in Bolivar is divided by the value in dollars, a kilo of premium meat costs around $ 3.7, while a carton of eggs (30 units) is worth $ 3.4 and a kilo of milk is worth $ 5.1.

“Everyone must adhere to these agreed prices, including the integral cost structure from primary producer to final disposal,” stated the Vice President of the Economic Area.

The Aissami insured that “The aim of this measure is to protect people and that the Venezuelan family has access to all goods and services.” In addition, he also stressed that the idea of ​​pricing in Petro “is part of the national government’s efforts to promote the use of this cryptocurrency.”

He emphasized to be vigilant in complying with these “Fair prices”It therefore called on the relevant authorities, governors, mayors and armed forces to ensure their implementation and the execution of which is monitored by EU officials Sundde (National Superintendency for the Defense of Socio-Economic Rights) during the audits that are carried out in the sales rooms.

Prices vs. minimum wage

In this scenario, a public employee or retiree who earns a comprehensive minimum wage (Bs 800,000 between salary and meal voucher) only has enough to purchase around 10% of the government-regulated basket since the new wage increase barely exceeds a market with To create some of the 27 regulated products, you need to invest at least $ 40.

In addition, Venezuelans do not enjoy the promise of the National Executive to anchor their salary at 0.5 petros, which was announced in 2018, which would bring each Venezuelan salary to around $ 30.

On the other hand, the idea of ​​setting prices Petros It is part of the National Executive’s forced acceptance to implement the use of this state-owned cryptocurrency, which has also been prescribed for payments for public services and after failed attempts by national banks to use biometric devices to enable people to buy with the digital currency. However, the lack of trust in its use has created great uncertainty, which has limited its implementation.

Similar measures led to bottlenecks

In August 2018, the national executive published a list of “fair prices” that led to food shortages. Also in November 2017 Sundde agreed the cost of beef according to the cut, and a month after the measure was announced, butchers began to monopolize the item, resulting in a shortage.

The Venezuelan government did this last April “National Inspection Plan to Curb Criminal Speculation”, Exercise temporary employment measures at Consorcio Oleaginoso Portuguesa S.A. (Coposa) as well as supervised company sales Polar food, plum and the Matadero de Turmero (state of Aragua).

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Source: Cocuyo effect, El Nacional, banking and business, talc.

Article by Eliana Mariña / in collaboration for DailyBitcoin

picture of Unsplash