Large parts of Venezuela are suffering acute gasoline shortages as US oil sanctions begin to take effect on the nation’s fuel supply.
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Long lines at gas stations have been reported in a growing number of states and localities throughout the country, with only a fraction of gas pumps open.
Wait times vary from several hours to even days, with local residents in parts of Tachira, a western border state known as a hub of gasoline smuggling to Colombia, waiting up to three days to fill up their tanks.
In contrast, the Caracas metropolitan region has yet to see major interruptions in gasoline access, with authorities looking to maintain stable conditions in the capital.
The Venezuelan government has long maintained a generous gasoline subsidy, with drivers paying just fractions of a cent at the pump.
Attempts to raise gas prices using a biometric subsidy system never got past the trial phase in September 2018.
However, the country’s declining oil production, significantly exacerbated by the impact of US economic sanctions, has led to growing shortages in recent years.
Following the August 2017 imposition of financial sanctions by the Trump administration, crude output plummeted by 30 percent, falling from an average of 1.911 million barrels per day (bpd) in 2017 to 1.354 million in 2018.
Output further crashed in 2019 as a result of the US oil embargo imposed in late January as well as nationwide blackouts in March, falling to just 740 thousand bpd in March before rebounding slightly in April.
Production was reported at 768 thousand bpd by OPEC secondary sources and at 1.037 million bpd by state oil company PDVSA’s direct communication last month.
Chronic shortages have been intensified in recent days as US oil sanctions take full effect.
On April 28, exemptions permitting US gasoline exports to Venezuela expired, cutting off Venezuela from 54,000 bpd of fuel.
The South American country is estimated to produce nearly 200,000 bpd of gasoline, short of the national demand of 250,000 bpd.
According to Rafael Quiroz, Venezuela has reserves to last for around ten days, which may be in danger of depletion. ■