Venezuela threatens to slash petrol subsidies

Venezuela has announced plans to raise the country’s petrol prices, currently the lowest in the world, in an effort to shore up billions of dollars.

Suffering from the world’s highest rate of inflation, the government of Socialist President Nicolas Maduro believes the price hike could save an estimated $12.5bn annually.

But the plan could create a backlash, as deadly riots broke out in 1989 at the possibility of a price hike.

Al Jazeera’s Lucia Newman reports from Caracas.