Petrol pain for Venezuelans
FOR motorists in Venezuela, life used to be like a line from the song Car Wash: “Fill up and you don’t have to pay.” Not anymore.
This week, Venezuelans have been hit with the harsh fact that they do have to pay for their petrol, in one of the most oil-rich nations on earth. The revolutionary socialist government of the central American state has been forced to charge for fuel because its refineries are dilapidated due to chronic mismanagement. It is struggling to import chemicals because of US sanctions and has lost its capacity to turn its domestic heavy crude into gasoline.
The last of five oil tankers carrying petrol from Iran reached Venezuela at the weekend. Those supplies will help the country for a few weeks, and on Monday Tehran said it was “ready to send more ships” if Caracas asks. The US has urged other countries not to cooperate.
The move risks sparking protests in a country where citizens are struggling with soaring inflation and shortages of basic foods and goods. In the past, fuel price rises have triggered outrage and protests, most notably during the infamous “Caracazo” riots of 1989 in which hundreds died. “This is a necessary action, for which I take responsibility,” President Nicolas Maduro said in a televised address.
Under the new scheme, Venezuelan motorists will still get some petrol almost for free. They will be allowed 120 litres a month — enough to fill an average car twice — for 5,000 bolívares a litre, meaning it will cost 1.20 dollars to fill a car. Motorcyclists will be allowed 60 litres a month. However, anyone who wants more will have to buy it from one of 200 designated petrol stations and pay 50 US cents per litre, only slightly cheaper than in the US and many countries in Latin America. They will be able to pay in dollars, an indication of how the US currency has permeated most aspects of Venezuelan life.
Furthermore, to get their heavily subsidised initial quota, people will need a valid “Fatherland Card”, a voluntary carnet introduced by President Nicolás Maduro in 2017. Many government opponents refuse to register for the card, saying the Maduro regime uses it to exercise totalitarian control.
“This is one more government joke,” said 66-yearold engineer Antonio Linares as he queued for petrol in Caracas on Monday.
“You can’t divide the population in two, and that’s what they’re trying to do. I don’t have a Fatherland Card and I hope I don’t have to get one.”
At many petrol pumps, there was more confusion than anger. It is unclear how the government will enforce the quotas. Drivers of state vehicles and trucks can still fill up for free, offering a golden opportunity for profiteering.
“On Saturday I was about to pay four dollars a litre on the black market because I haven’t had petrol since March,” said 37-yearold Jennifer Silva.
“How can it be that as an oil-producing country we’re importing petrol?”
Meanwhile, Venezuela has suffered another blow in its bid to sell its crude oil abroad. Caracas used to sell much of its oil to the US, but Washington’s sanctions put a stop to that. Then Rosneft, Russia’s state-owned oil company, stepped in, acting as an intermediary for sales of Venezuelan crude, until the US sanctioned Rosneft’s trading arm in February. Rosneft responded by transferring its Venezuelan assets.
Venezuela’s oil output has crashed during 21 years of left wing rule. A founding member of Opec, the country used to supply about 15 per cent of the world’s oil. Now it accounts for less than one per cent. Having produced more than 3m barrels a day in its heyday, its output has dropped to about 600,000 bpd, and it is struggling to sell at a profit due to US sanctions and depressed demand amid the coronavirus pandemic