Some Venezuelan gas stations empty as government bans queuing to slow coronavirus

MARACAIBO, Venezuela, (Reuters) - Some gasoline stations in Venezuela were unusually empty yesterday, as regional authorities banned queuing for gasoline as part of a nationwide quarantine to contain the spread of the coronavirus.

Venezuela has the largest oil reserves in the world, but motor fuel has grown increasingly scarce in the past year due to U.S. sanctions aimed at ousting President Nicolas Maduro, as well as dropping output at state owned oil company PDVSA’s refineries. Hours-long queues at gas stations have become a common sight.

The bans on queues ordered by regional authorities this week for three states come as the risks of acute fuel shortages rise.

So far in March, just 71,250 barrels per day (bpd) of fuel have been discharged at Venezuelan ports, compared to rates of 166,000 bpd in January and 177,000 in February, according to PDVSA documents seen by Reuters and Refinitiv Eikon data.

Approximately 55,000 bpd more is either en route to Venezuela or waiting off the coast to unload later this month.

Venezuela’s refineries have the capacity to produce about 1.3 million bpd but are in critical shape. They processed just 154,000 bpd of crude on average in January and February, according to an internal PDVSA document seen by Reuters, well below domestic fuel demand of about 300,000 bpd.

Neither PDVSA nor Venezuela’s oil ministry responded to requests for comment

Regional authorities said the bans on queuing were designed to prevent the spread of the coronavirus in Venezuela, where 36 cases have been confirmed, and ensure security and health services had enough fuel.