Addressing a gathering of provincial governors and mayors, Chavez said planting around 300,000 hectares of sugar cane and building 15 ethanol processing plants would create around 500,000 jobs and free the country of its current need to import ethanol.

Venezuela is the world's fifth largest oil exporter, with use of the country's windfall oil profits on a range of social programs a key platform of Chavez’ socialist reforms. Increased use of ethanol is seen as a way for Venezuela to avoid the environmental and economic costs of oil dependence, while maintaining strong oil export income.

With the success of widespread biofuel use demonstrated in other South American nations such as Brazil, Chavez believes it can provide a partial solution to the US-style capitalism he blames for Venezuela’s social and economic woes.