Venezuela's Gasoline Crisis: Stations on the Brink

Venezuela's association of gasoline station operators has sounded the alarm, declaring an emergency over what they describe as untenable earnings, according to sources and a document reviewed by Reuters.

The Fenegas association urged the government on Wednesday to standardize gasoline prices across the nation, lamenting years of ignored requests for assistance. A letter to the government decried the lack of solutions allowing for safe, continuous, and profitable operations.

The government has implemented a pilot program, starting in Caracas and expanding elsewhere, where 'super premium' gasoline is priced at $1 per liter, compared to the $0.50 rate established in 2020. Despite this, most stations, supplied by PDVSA, operate under a government subsidy at $0.50 per liter. However, operators report that their profit margins remain alarmingly low.

According to three sources close to Fenegas, stations earn just one cent per liter, insufficient for covering salaries and basic operational costs. As a result, the association met with government representatives to share an emergency request.

Additionally, some stations priced in dollars have seen a dramatic decline in sales due to increased pricing, with sales dropping significantly as Venezuelans struggle to afford dollar-based prices.

The Venezuelan communications ministry, responsible for all government press inquiries, did not immediately reply to requests for comment.