Venezuela Backtracks, Won't Halt Heating Oil Program For Poor U.S. Households

Caracas, Venezuela (AHN) - The Venezuelan government has changed its mind on stopping its heating oil assistance program for some 200,000 low-income households in the U.S.

The turnaround by Caracas came two days after Venezuelan President Hugo Chavez announced on Monday that his country's state-owned oil company will no longer provide free heating oil to poor Americans as a measure to cope with falling oil prices in the global market, which has led to a government budget crunch in Venezuela.

Joe Kennedy, son of late Sen. Robert F. Kennedy and manager of Boston-based Citizens Energy Corp., which has been distributing the free heating oil from Citgo Petroleum since 2005, said Wednesday Chavez's decision shows his concern for the poor anywhere in the world.

"This decision is a clear, direct message from President Chávez of his desire to strengthen relations between his country and the United States, particularly at this time, when a new U.S. administration is scheduled to be sworn-in within the next few weeks," ABC News quoted Kennedy as saying.

Houston-based Citgo, the U.S. subsidiary of Venezuela's state oil firm, provided $100 million worth of free heating oil the previous winter to poor residents in 23 states, including 65 Indian tribes, according to Citizens Energy.

In Montana, the heating oil assistance gave households 100 gallons of propane worth $260 last year, said Letha Whitewolf, who manages the heating assistance program for the Northern Cheyenne in the Treasure State.