Venezuela has sent 70 million liters (18.5 million gallons) of diesel fuel to support Paraguay’s incoming president.

Paraguay oil company director Alejandro Takahashi says the fuel is a goodwill gesture from Venezuelan President Hugo Chavez and will be part of the country’s strategic reserves.

Leftist and former Catholic bishop Fernando Lugo will be sworn in Aug. 15, ending 61 years of conservative rule.

Paraguay faced shortages of diesel fuel two months ago that damaged agricultural production. The country does not produce oil and consumes 3 million liters (790,000 gallons) of diesel daily.

Paraguay will only pay for what it uses of the US$70 million shipment, Takahashi said Thursday.