Venezuela's opposition has won control of the state legislature, electoral authorities said, in a blow to the oil-rich country's socialist government that has held the congress for 16 years.

According to an Aljazeera report, the streets of the Venezuelan capita of Caracas broke out in shouts of joy, fireworks and car honks after National Electoral Council president Tibisay lucena announced the victory early on Monday.

Socialist President Nicolas Maduro promptly appeared on television saying he accepted the defeat, a blow to his leadership during a dire economic crisis.

"We have come with our morals and our ethics to recognise these adverse results, to accept them and to say to our Venezuela that the constitution and democracy have triumphed," he said.

Al Jazeera's Lucia Newman, reporting from Caracas, said the defeat was a stinging blow to the government.

"This is even more than the opposition had hoped for. It's one of the strongest blows to the socialist revolution in the 17 years since it's been in power."

Fireworks erupted over the capital Caracas as opposition supporters celebrated.

Maduro's United Socialist Party of Venezuela won 46 seats in the single-chamber National Assembly, Lucena said. The results for 22 other seats had not yet been confirmed.

The result strengthens the opposition's hand against Maduro though it was short of the super majority the MUD had hoped for.

"Venezuela has won," tweeted senior opposition leader Henrique Capriles. "We always said this was the way: humility, maturity and serenity."

Maduro called for the opposition to "live together" with his side.

He softened his tone from before the elections when he had vowed to hold onto power "no matter how".

"We have lost a battle today, but the struggle to build a new society is just beginning," he said.

"A counter-revolution has triumphed, which has imposed its own way, its war," he said, in reference to what he alleges is a US-backed "economic war" against Venezuela by businesses.

Hit by falling prices for the oil exports on which it relies, the country of 30 million is in an economic crisis, with families suffering shortages of basic foods and supplies.

*Photo shows President Nicolas Maduro of Venezuela.

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