Venezuela set to raise gasoline prices to international levels.

[jose chalhoub + 388]

Venezuela is about to experience its most critical situation since it started to be an oil producing and exporting country: to pay international prices (allegedly it will be raised to 1.10$ per liter) for those who don't register for a vehicle national database, which will receive subsidies for gasoline, but such a measure is qualified as a political manipulation by the venezuelan government. Historically in the country raise in gasoline prices have stirred social unrest and political chaos but this massive raise if it comes into fruition will have unpredictable consequences for an already chaotic country. 

[CMOP + 227]

@jose chalhoub when is this increase set to take place? Let's really hope this doesn't add even more fuel to the fire.  

[jaycee + 348]

35 minutes ago, jose chalhoub said:

Venezuela is about to experience its most critical situation since it started to be an oil producing and exporting country: to pay international prices (allegedly it will be raised to 1.10$ per liter) for those who don't register for a vehicle national database, which will receive subsidies for gasoline, but such a measure is qualified as a political manipulation by the venezuelan government.

So if you register there is no price rise, will everyone not just register to avoid the price rise? I dont see the problem with cars being registered is it so that people who buy a lot of petrol can be questioned about smuggling in which case I can see the problem some people will have a lot less food if that happens. Do you think that will be enough to raise the populace up against Maduro or will they just accept it? Sorry for all the questions I am not undertanding the full consequnces of the rise and would like to find out more.

[jose chalhoub + 388]

15 minutes ago, CMOP said:

@jose chalhoub when is this increase set to take place? Let's really hope this doesn't add even more fuel to the fire.  

Lets hope never this to take place, and many people even some contacts inside PDVSA have told me that there's still too much operative issues to solve and carry out for this to take place. And yes this will cause important turmoil in coming weeks since the situation is too volatile now in Venezuela. 

[jose chalhoub + 388]

8 minutes ago, jaycee said:

So if you register there is no price rise, will everyone not just register to avoid the price rise? I dont see the problem with cars being registered is it so that people who buy a lot of petrol can be questioned about smuggling in which case I can see the problem some people will have a lot less food if that happens. Do you think that will be enough to raise the populace up against Maduro or will they just accept it? Sorry for all the questions I am not undertanding the full consequnces of the rise and would like to find out more.

Dont worry, it's hard to understand the full issue even for us venezuelans living in this messy situation. First venezuelans dont want to register for a database unnecessary since we already have documents of our vehicles like our drivers licences and our cars certification, so no point in carrying out this thing again. This is only for political manipulation and social control since it deals with involving more people under the so called carnet de la patria (a document that is backed by the government entitling poor people to basic products in exchange for political support) and now this is extended to the use of gasoline.

The real problem here is that Venezuela is suffering from a crisis in its refining sector, we are importing gasoline (and bad gasoline by the way), lack of motor oil, many who can do import motor oil from the U.S. and since there's a lack of gasoline in the last months, then the government is trying to cover and mask its own inefficiency and corruption with this terrible measure. This is more or less the issue. 

[jose chalhoub + 388]

Its impressive the level of destruction of our entire oil and gas industry and we are not in a civil war like Libya or Syria or Yemen, far from that situation, only because the lack of love for Venezuela by its authorities and the corruption that ransacked the whole riches of the country. And it expanded like a malign cancer all over the rest of the economic sectors. 

[jose chalhoub + 388]

And with a potential CITGO take over, PDVSA's alter ego in the U.S. which was one main exporter of gasoline to Venezuela and with all the chaos to follow if Curacao ISLA refinery, leased to PDVSA by the island authorities which used to process venezuelan oil which might not be operated by PDVSA next year when the lease ends, then further gasoline problems will come to Venezuela. 

[jose chalhoub + 388]

I can foresee another Cuba style car landscape in Venezuela in coming years if there is no change soon. 

[DanilKa + 443]

at least price inflation would be least of their worries...

To be honest, I'm surprised how long they kept prices at give-away level. May be too late to stop destruction of the O&G industry. Let's hope for most stubborn chavistas to come to senses and for peaceful regime change (I know, magical thinking...)

[Jan van Eck + 7,558]

Referring to the chaos in the Eastern Venezuelan city of Barcelona, the physicians there are being paid two Euros a month.  If they spent 100% of that income on gasoline, it would buy one-half gallon.  

When ordinary people are working, which is not the case for vast numbers, then the equivalent pay is one Euro a month.  Of course, it is paid in Bolivars, which is inflating so fast that your pay of one million Bolivars  (equal to one Euro) is all gone by the time you take the bus back from the pay clerk wicket window. 

The reality is that the rise in gasoline is a factor only for "the rich," and the smugglers to Colombia, those intrepid and adventurous fellows that risk all for a wild ride to the Border with gasoline to sell there, to make a few bucks and bring back food.  Meanwhile, the agriculture (and cattle) sector in Venezuela is pretty much wrecked, and the sector cannot feed the population,  One credible report states that Venezuela has to import 75% of its food.  And can the poor pay for it?  Nope. Looks like that is on the cusp of getting very much worse. 

I cry for the people of Venezuela.

[Roz + 2]

First, hello everybody.  Just got on this site.  Second, this is what got Chavez elected in the first place, trying to raise gasoline prices.  Should be interesting

[Rodent + 1,424]

10 hours ago, Roz said:

First, hello everybody.  Just got on this site.  Second, this is what got Chavez elected in the first place, trying to raise gasoline prices.  Should be interesting

welcome!

are we talking about raising gasoline prices or eliminating subsidies?

there will be riots! riots I tell you! 

[Jan van Eck + 7,558]

3 hours ago, Rodent said:

welcome!

are we talking about raising gasoline prices or eliminating subsidies?

there will be riots! riots I tell you! 

Soon enough, there can be all the riots you want, there still will be no gasoline, it will join the sirloin steak as a fantasy memory.  The Maracaibo heavy oil is refined for domestic consumption in that refinery sitting in Curacao, an island maybe 20 miles off the coast, which at one time was Dutch, but apparently has voted for (and been granted) what is effectively an independence.  That refinery is operated by PVDSA or CITGO, cannot remember which entity, under a lease arrangement with the government of Curacao, and the lease ends on Dec. 31st.  There is zero indication that the Govt. of Curacao is inclined to write a new lease to Maduro.  

OK, so without a refinery, where is this gasoline going to come from?  Russia? China?  Who is going to front the shipments, when Venezuela has no cash?  And in any event, you already know that whatever gasoline shows up, it goes to the military and the govt officials, there won't even be one drop for the public pumps.  Bye-bye. 

[Rodent + 1,424]

1 hour ago, Jan van Eck said:

Soon enough, there can be all the riots you want, there still will be no gasoline.

Well, theoretically, ending gasoline subsidies may enable Venezuela to purchase gasoline--if the selling price was closer to the purchase price, that is.

While the odds are that there will be no gasoline, there may also be no more Maduro. Starving citizens make for disloyal followers. Put gasoline completely out of their reach and you might be bringing on a lynch mob.

But what am I saying?? Maduro is turning this ship around and as soon as El petro takes off, Venezuela will be back in black.

And before ya'll chastise me for my chronic sarcasm, I should tell you that I just read an article "10 Reasons Why Sarcastic People Are Actually Really Smart". So I'm feeling pretty good about myself right now.