Venezuela Ends U.S. Heating Aid

With sagging oil prices putting pressure on its own budget, the government of Venezuela has ended its three-year-old, $100 million program providing home heating-oil assistance for poor Americans in 23 states.

The Venezuelan aid, given through the state-owned oil company's Citgo Petroleum subsidiary, had helped provide heating oil to about 200,000 low-income people, including many in Maryland, Virginia and the District.

Just a year ago, when rising oil prices were swelling the coffers of oil-exporting nations, Venezuelan President Hugo Chávez proclaimed his concern for cash-strapped U.S. citizens by saying on Citgo's Web site, "We are all americanos, and together we share the Bolivarian mission of giving hope and a better life to the poorest and most vulnerable -- whether they live in Venezuela or Vermont."

But now Chávez, who is seeking support for a referendum that would lift the Venezuelan constitution's term limits so he could run for reelection in 2012, is focusing more on making ends meet for people in Venezuela, not for the citizens of Vermont. Analysts say Venezuela needs oil prices of $60 to $90 a barrel to balance its budget. Yesterday the price of a barrel of crude oil for February delivery closed at $48.81 on the New York Mercantile Exchange.

"He is deciding to worry about his own domestic politics instead of ours," said Julia Sweig, director of Latin American studies at the Council on Foreign Relations. "Even before oil prices fell, he had to finance spending programs by borrowing money. Now he's shoring up all the domestic political support he can get and if that means rerouting $100 million from Amercians to his own constituents, it makes a lot of sense."

The cutoff of home heating-oil assistance was announced by Joseph P. Kennedy II, chairman of Citizens Energy, which had administered the program and been scheduled to authorize deliveries starting yesterday. Kennedy said he received word of the cutoff just before Christmas, but that he had flown to Houston to try persuade Citgo's chief executive to continue the program. He offered to go to Caracas to meet with Chávez.

Kennedy said he had also asked for help from major U.S. oil companies and members of the Organization of the Petroleum Exporting Countries, but was unsuccessful.

"I will continue to fight and advocate for a continuation of this critical assistance for our most vulnerable citizens," Kennedy said. "However, this decision remains in the hands of CITGO Petroleum and its parent company, Petroleos de Venezuela." Pedevesa is the Venezuelan state oil company.

Citizens Energy has been providing home heating oil to low-income Americans for three decades, and Kennedy said that Citizens Energy, with the help of individual and other corporate donations, would continue to provide heating oil for people in Massachusetts and a handful of other states.

"Heating-oil prices have declined from this summer's record highs, and they are lower than they were at this time last year," said Brian O'Connor, a spokesman for Citizens Energy. "But that's little comfort to families who couldn't afford the prices before. There are a lot of people who live on very tight margins."

Low-income Americans can also seek assistance through state governments. Since 1982, the federal government has provided states with block grants to fund the Low-Income Home Energy Assistance Program. The appropriation for the current fiscal year is $4.5 billion and is targeted at households below 150 percent of the poverty level.