www.vheadline.com Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Venezuela's inflation rate rose to 7.1% in February, a seven year high caused by increased demand a reduced supply brought about by price controls enforced by the government six weeks ago as a result of severe pressure on the nation's international reserves.

Last month's figure was the highest since June 1996, when a similar figure was reported.

February's 7.1% saw the 12 month trailing inflation rate rise to near 39%, the highest level since 1997.

The rise in inflation rates had been forecast by many analysts, who cautioned that imposing price controls would significantly reduce supply of goods and therefore force prices higher.

Central Bank of Venezuela (BCV) director Armando Leon said "price controls have had less impact than the authorities expected ... they have caused a drop in the supply of goods."

Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Petroleos de Venezuela's (PDVSA) efforts to recover production of gasoline have been hampered by the company's inability to restart a catalytic cracking unit at the Paraguana refinery. An attempt to restart the unit was made over the weekend, but this failed as problems persisted in being able to establish a stable gas supply and to overcome the effects of sabotage.

However, the unit is expected to be up and running by the end of next week, and once this happens production should stand at 140,000 barrels of gasoline per day, in addition to the 60,000 being produced at the Cardon plant this would lift levels to 200,000 barrels per day, almost enough to cope with domestic demand.

The Venezuelan government has been forced to import significant quantities of gasoline from overseas to meet domestic demand, and although long queues were evident across the country, it now seems that supplies have stabilized and shortages have all but disappeared.

Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Petroleos de Venezuela's (PDVSA) efforts to recover production of gasoline have been hampered by the company's inability to restart a catalytic cracking unit at the Paraguana refinery. An attempt to restart the unit was made over the weekend, but this failed as problems persisted in being able to establish a stable gas supply and to overcome the effects of sabotage.

However, the unit is expected to be up and running by the end of next week, and once this happens production should stand at 140,000 barrels of gasoline per day, in addition to the 60,000 being produced at the Cardon plant this would lift levels to 200,000 barrels per day, almost enough to cope with domestic demand.

The Venezuelan government has been forced to import significant quantities of gasoline from overseas to meet domestic demand, and although long queues were evident across the country, it now seems that supplies have stabilized and shortages have all but disappeared.

www.vheadline.com Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

President Hugo Chavez Frias' Venezuelan opponents living in New York have called for a world demonstration on March 9 to urge President Hugo Chavez Frias to step down or accept an electoral solution to the current political crisis.

They are hoping for demonstrations in several European cities, as well as in the United States and across Latin America.

There will also be a demonstration outside the Whit House in Washington on the same day, organized by Lucha Democratica, SAVE Venezuela and Resistencia Civil de Venezolanos en el Exterior (Recivex).

Recivex claims to be active in over 100 cities worldwide and groups several other opposition organizations based outside Venezuela.

www.vheadline.com Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

According to reports in the US media, the leader of the Revolutionary Armed Forces of Colombia (FARC) Manuel Marulanda Velez is currently in hiding in the jungle in Venezuela near its border with Colombia.

The article in the El Nuevo Herald newspaper, which cites intelligence sources for the information, claims that the FARC leader entered Venezuela through Vichada State.

The information has allegedly been corroborated by Colombian Federation of Municipalities president Gilberto Toro who said "this is not a report that the Venezuelan authorities should discard, on the contrary they should investigate."

Toro called on President Hugo Chavez Frias to launch an investigation so there would be no repeat of what happened with Peru's Vladimir Montesinos, who Venezuela repeatedly denied was in the country, but proved to be there all the time.