The new law mandates the tax on foreign oil hit 60 percent when the price exceeds $100 a barrel, a rate many experts believe will not be diminished in at least the coming year, El Universal reported Thursday.

The move, according to Oil and Energy Minister Rafael Ramirez, could generate up to $9 billion annually.

The passing of the tax increase by the Venezuelan Congress, many members of which are ardent supporters of President Hugo Chavez, is seen as a major win for the Venezuelan leader who lost a referendum this year that would have granted him additional executive powers, including the ability to seek a third term in office.