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<a href="http://news.bbc.co.uk/2/hi/americas/4263650.stm" eudora="autourl">
http://news.bbc.co.uk/2/hi/americas/4263650.stm<br>
</a> <br>
Sandinistas in Venezuela oil deal <br>
<b>Nicaragua's left-wing opposition party has announced an agreement to
buy Venezuelan oil at preferential rates. <br><br>
</b>Sandinista leader Daniel Ortega said councils governed by the party
would be able to buy oil at a 40% discount. <br><br>
The rise of global oil prices has caused an energy crisis in Nicaragua
which has led to power rationing. <br><br>
But the government, which did not take part in the deal, is questioning
the Sandinistas' access to the proper infrastructure to carry it out.
<br><br>
<b>New company <br><br>
</b>Nicaragua's main energy supplier, Fenosa, began rationing power for
up to eight hours a day earlier in September. <br><br>
Fenosa said it was left with no choice after the Supreme Court barred it
from raising tariffs to keep up with the price of fuel used to generate
electricity in Nicaragua. <br><br>
President Enrique Bolanos - who is locked in a power struggle with the
Sandinistas - said on Monday that he would ask congress to approve rate
increases. <br><br>
He also wants congress to allow him to hand over $30m to private energy
firms. <br><br>
Under the deal announced by Mr Ortega, a Venezuelan-controlled company
will be created in partnership with the municipalities. The company will
transport, store and deliver fuel. <br><br>
More than half of Nicaragua's councils are run by Sandinistas and could
benefit from the cheaper oil. <br><br>
Venezuela's Ambassador Miguel Gomez said he hoped similar schemes could
be extended to other Central American countries. <br><br>
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