El Salvador offers a $0.20 fuel subsidy to locals who pay in BTC
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El Salvador offers a $0.20 fuel subsidy to locals who pay in BTC

Saudu Clement
Saudu Clement

In a bid to bolster the adoption of Bitcoin and its government-issued Chivo wallet, El Salvador is offering a discount of $0.20 per gallon in petrol prices to consumers who pay using BTC via the Chivo Wallet.

Salvadoran president Nayib Bukele hailed the development as “positive news for the pockets of Salvadorans.”

He explained that "the state company Chivo negotiated with the largest gas station companies in our country, so that starting tomorrow; their stations will sell each gallon of fuel $ 0.20 cheaper, with Chivo wallet."

Bukele emphasized that the discount had no limits and that any local person or company could access the rebate. Additionally, the discount would eradicate “several increases in the international price of fuels” and “reduce transportation costs in supply chains.”

Nevertheless, several Salvadorans still appear unconvinced that the subsidy serves a greater purpose for the general public.

In response to the news, a Twitter user opined that “those 20 cents will come from all of us, right? The gas station does not lose; there goes the refund after paid with the taxes of even those who walk on foot.”

Another Twitter user questioned the government’s decision not to offer relief on fuel prices at an earlier date. And some others remained cynical as to the government’s decision to offer the discount to only those who pay using Chivo.

Apart from this subsidy, Bukele also broke the news that he has authorized a fund intended to “stabilize” the domestic price of liquefied gas. He confirmed that Salvadoran locals will experience “a slight reduction” in cost although the international market had planned a $1.17 rise in the price of 25-pound cylinders of liquefied gas.

He added that the government would bear the increase only for a year, and all reductions in global gas prices will also be passed on to consumers during the period.

El Salvador became the first country to legally recognize Bitcoin as legal tender on Sept. 7. A few days later, BTC PEERS reported that El Salvador's digital Bitcoin wallet already hosted half a million users.