Venezuela has decided to raise the price of gasoline for the first time in 20 years, and also devalue its currency in an attempt to ease the economic crisis in the country, reported AFP. President Nicolas Maduro on Wednesday said that he would raise the pump price of premium gasoline from its current super-low level of $0.01 (68 paise) per litre to the equivalent of $0.95 (Rs 65) at the fixed official exchange rate – a 6,000% jump.

Venezuela has the largest known oil reserves in the world, but has not been able to withstand the plunge in world oil prices over the last 18 months, which make up 95% of the country's foreign income, reported The Guardian. The move risks sparking protests in a country where citizens are struggling with rising inflation and shortages of basic foods and goods, said the report.

The socialist president also said his government is simplifying the country's complex three-tier exchange rate system. From Thursday, there will only be two rates: a protected official rate for food and medicine imports, and a parallel "floating" rate for other transactions. The country's currency will weaken by 37% from 6.3 to 10 bolivars per US dollar under the food and medicine rate.