Venezuela: Air Tickets & Inflation

By Juan Molina | Juan Molina | 29 Oct 2020

Today 10/29/2020, there was once again an increase in the price of the dollar with respect to the national currency of Venezuela the "Bolivar", placing the exchange rate at 1USD = 540,149.73 Bs.

This increase represents a rise of 35.37% compared to 09/29/2020 when the rate was 1USD = 399,007.54 Bs.

Venezuelans have become accustomed (unfortunately) to living with these changes in our economy, these increases have a direct impact on the prices of products and services, deteriorating our already impaired quality of life.

Perhaps for people from other countries this is not new news, but to give you a perspective of the level of devaluation of our national currency I wanted to make a comparison taking as a reference the prices of air tickets according to the information provided by Google Flights and the relative distances between cities.

Miami - New York

Source

Air ticket rates at 29/10/2020

Source

Caracas - Maracaibo

Source

The information on the price of these flights is not available in Google Flights, but in Venezuelan airports, the price of this air ticket is $230.

If we prorate the price per kilometer of travel, we would obtain:

Miami - New York
1,753 Km ---> $107
1Km ---> ?
? = $0.06/Km

Maracaibo - Caracas
518 Km ---> $230
1Km ---> ?
?= $0.44/Km

The price difference is an abysmal 733%.

Conclusion

Although the price of air tickets is not an official indicator for calculating inflation, this can effectively provide us with a clear perspective of Venezuela's economic weakness.

Traveling by land routes also involves considerable expense. Land passages have experienced an increase of more than 1000% as a result of the recent energy crisis as a result of gasoline shortages.

Venezuela, despite being an oil-producing country and having the largest oil industry in the entire South American continent and the largest proven oil reserves in the world, is currently unable to produce a single barrel of gasoline to supply the internal market, depending on fuel imports, which come from very distant countries like Iran.

This increases the great levels of corruption, since the international sale of gasoline is made with an excess price and recently, according to press information, Venezuela is making payments with gold bars, as a mechanism to evade the sanctions imposed by the administration of the United States.

Please, don't forget see this post at my steemit's blog:
https://steemit.com/hive-175254/@juanmolina/venezuela-air-tickets-and-inflation

@juanmolina

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