Venezuela’s government rolled back an increase in fuel prices in a matter of weeks after it drew pushback from industry groups.
The country’s state-owned oil company Petroleos de Venezuela SA will go back to subsidizing the price of diesel for businesses at 3 bolivars per liter after hiking prices to $0.32 per liter in early July, according to the official gazette, dated July 21 and circulated on Thursday.
“After meetings with industrial groups, farmers and cattle owners, we decided to adjust pricing to improve the cost structure for all sectors,” PDVSA Trading Vice President Juan Carlos Díaz said in response to questions.
Nicolás Maduro’s government plan to phase out fuel subsidies has also been impacted by a severe fuel shortage at the pumps caused by failures at two of its key refineries. Cardon and Amuay have been inoperative for more than a week due to failing pumps and missing parts, leading drivers and truckers to queue up for hours — even days — for fuel.
Read more: Venezuela Is Down to One Working Refinery as Gas Lines Grow
The government last meaningfully increased gasoline and diesel prices in 2020 after rolling back a decades-long policy of subsidies for drivers and public transportation that made Venezuela’s fuel one of the cheapest in the world. Despite sitting atop the world’s largest crude reserves, Venezuela’s refineries can’t meet domestic demand for fuel due to years of disinvestment, mismanagement and US sanctions.
