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Cheap oil from Chavez arrives in U.S.


SevenSeasJim

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Cheap oil from Chavez arrives in U.S.

Last Updated Wed, 23 Nov 2005 07:24:01 EST

CBC News

Thousands of low-income people in Boston and New York will get help with heating oil this winter, thanks to a gesture from Venezuela's controversial president.

Citgo Petroleum Corp., a company controlled by the Venezuelan government, will supply more than 12 million gallons of home heating oil at a cost 40 per cent below market prices.

Venezuelan President Hugo Chavez. (AP file photo)

The oil will be distributed by two non-profit organizations.

Venezuelan President Hugo Chavez proposed offering fuel directly to poor communities in the United States in August, when oil prices were hitting record highs.

His offer was seen as an attempt to embarrass the Bush administration, with which Chavez has long been at odds. He once called the U.S. president a "genocidal madman," and led 10,000 protesters in an anti-Bush march at the recent Summit of the Americas.

The first supplies of cheaper oil arrived Tuesday in the Boston area, where Joe Kennedy of Citizens Energy pointed out that American oil companies and the U.S. government have so far failed to provide similar relief.

"Our federal government has made billions and billions and billions of dollars just this year on the royalty payments the oil companies pay to the government of the United States," he said.

But when it comes to help for low-income Americans, Kennedy said, "What do we hear from Washington? 'Sorry, boys. There's no money in the till.

"

Democratic Congressman William Delahunt of Massachusetts publicly thanked Chavez, as well as the government and people of Venezuela.

"They should know that their generosity will [keep] thousands of families here in Massachusetts from being forced to make an unacceptable choice between food, between heat, between health care, and between paying the rent," he said.

The United States relies on Venezuela for about 10 per cent of its oil supplies.

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