Venezuela to Expand Fuel Discounts to US

The Associated Press

Friday 06 January 206

Caracas, Venezuela - Venezuela said Friday it will expand a program to provide discounted home heating oil to low-income Americans, bringing savings to some Indian tribes in Maine.

Venezuelan-owned Citgo Petroleum Corp. has already begun selling cheaper fuel in some areas of Massachusetts and New York City as part of a plan by Venezuelan President Hugo Chavez to aid poor communities that he claims are neglected by Washington.

Chavez's opponents accuse him of using Venezuela's oil wealth to win friends while trying to one-up President Bush, a frequent focus of his verbal attacks. But Chavez's supporters defend the heating oil program as another example of a generous deed by a president leading a socialist revolution for the poor.

Bernardo Alvarez, Venezuela's ambassador to the US, said he will sign an agreement next week with the Penobscot, Micmac, Passamaquoddy, and the Houlton Band of Maliseet Indians to provide the cheaper heating oil.

"The Penobscot Nation is very grateful," tribal chief James Sappier said by phone from the reservation near Bangor, Maine. "This is probably one of the greatest decisions for our tribe in years."

Many in the tribe of 2,261 people are facing tough times economically as jobs have moved out of the area, and the discounted fuel could save a family $1,000 or more this winter, he said.

Sappier said heating oil prices have been hovering around $2.40 a gallon in the area recently, and Venezuela estimates participants in will save at least 60 cents a gallon.

Alvarez said Venezuela also will extend the deal next week to some parts of Vermont and Rhode Island.

Alvarez was accompanied by a group of American activists on a tour of a state-funded cooperative in Caracas where the poor receive free health care and hundreds work in textile and shoemaking shops.

The visitors included singer Harry Belafonte, actor Danny Glover, Princeton University scholar Cornel West and farm worker advocate Dolores Huerta.

"It was impressive for everyone to see that progress is being made," said Tavis Smiley, who joined the group and hosts a talk show on PBS television.