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Exclusive: Venezuela increased fuel exports to allies even as supply crunch loomed
Source: Reuters
COMMODITIES | Fri Mar 24, 2017 | 3:35pm EDT
Exclusive: Venezuela increased fuel exports to allies even as supply crunch loomed
By Marianna Parraga and Alexandra Ulmer | HOUSTON/CARACAS
A gasoline shortage in OPEC member Venezuela was exacerbated by an increase in fuel exports to foreign allies such as Cuba and Nicaragua and an exodus of crucial personnel from state-run energy company PDVSA, according to internal PDVSA documents and sources familiar with its operations.
Leftist-run Venezuela sells its citizens the world's cheapest gasoline. Fuel supplies have continued flowing despite a domestic oil industry in turmoil and a deepening economic crisis under President Nicolas Maduro that has left the South American country with scant supplies of many basic necessities.
That changed on Wednesday, when Venezuelans faced their first nationwide shortage of motor fuel since an explosion ripped through one of the world's largest refineries five years ago. At the time, the government of then-President Hugo Chavez curbed exports to guarantee there was enough fuel at home.
This week's shortage was also mainly due to problems at refineries, as a mix of plant glitches and maintenance cut fuel production in half.
Unlike five years ago, Caracas has continued exporting fuel to political allies and even raised the volume of shipments last month despite warnings within the government-run company that doing so could trigger a domestic supply crunch.
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Exclusive: Venezuela increased fuel exports to allies even as supply crunch loomed
By Marianna Parraga and Alexandra Ulmer | HOUSTON/CARACAS
A gasoline shortage in OPEC member Venezuela was exacerbated by an increase in fuel exports to foreign allies such as Cuba and Nicaragua and an exodus of crucial personnel from state-run energy company PDVSA, according to internal PDVSA documents and sources familiar with its operations.
Leftist-run Venezuela sells its citizens the world's cheapest gasoline. Fuel supplies have continued flowing despite a domestic oil industry in turmoil and a deepening economic crisis under President Nicolas Maduro that has left the South American country with scant supplies of many basic necessities.
That changed on Wednesday, when Venezuelans faced their first nationwide shortage of motor fuel since an explosion ripped through one of the world's largest refineries five years ago. At the time, the government of then-President Hugo Chavez curbed exports to guarantee there was enough fuel at home.
This week's shortage was also mainly due to problems at refineries, as a mix of plant glitches and maintenance cut fuel production in half.
Unlike five years ago, Caracas has continued exporting fuel to political allies and even raised the volume of shipments last month despite warnings within the government-run company that doing so could trigger a domestic supply crunch.
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Read more: http://www.reuters.com/article/us-venezuela-gasoline-idUSKBN16V2D5