Venezuela’s gasoline retailers declared a national “emergency” following six years of scant profit margins, opening another potential flank for the country’s new interim leader over politically sensitive pump prices.
The Venezuelan association of retailers is demanding that the government raise gasoline prices and unify sales criteria for different grades throughout the country, according to a statement seen by Bloomberg.
The group’s demand, first reported by Reuters, comes after the government launched a plan in early February to market premium gasoline at select stations in Caracas, the Venezuelan capital, while maintaining subsidized prices for lower-quality grades at over 1,600 stations nationwide.
“We’ve agreed to declare the fuel stations in economic and operational emergency,” as of Feb. 25, the association said, after what it described as a breakdown in talks with the government to raise margins and address other “serious problems.”
The association didn’t explain what the emergency implies.
Most stations in the country are owned by national oil company Petróleos de Venezuela SA and operated by private retailers. A few are owned and operated independently.
The new emergency declaration could layer more pressure on acting President Delcy Rodríguez, who took over in early January following the US capture of Nicolás Maduro. The Venezuelan economy is still plagued by nagging inflation and a shortage of dollars.
PDVSA rolled out a new retail price in February of $1 per liter or $3.7 per gallon for gasoline billed as 97-octane, bringing the price closer to market levels. Nearly 30% of station owners sell subsidized gasoline at less than 1 cent per liter, while the rest is sold at $0.5 per liter.
Neither PDVSA nor the Oil Ministry responded to requests for comment on the retailers’ emergency declaration.
Since 2020, Venezuela has maintained a dual subsidy system for gasoline, capping revenue for retailers.
Venezuela has subsidized gasoline for decades, allowing drivers to tank up for less than it costs PDVSA to refine and distribute the supply. Fuel shortages are commonplace, especially outside Caracas.
Previous attempts to raise pump prices have faced public backlash, most dramatically in deadly 1989 clashes in Caracas. After announcing hikes six years ago, the government repealed increases for diesel, crucial for industry, commerce and agriculture.
To contact the editors responsible for this story:
Danielle Balbi at dbalbi@bloomberg.net
Patricia Garip
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