Caracas racing to ration fuel to loyal motorists

Venezuelan vehicle owners who fail to comply with a national census conducted by the ruling United Socialist Party (PSUV) will not be allowed to purchase motor fuel at subsidized prices, two senior Venezuelan officials warned yesterday.

Executive vice president Delcy Rodriguez said the census underway since 1 August will be extended to 12 August.

National constituent assembly president Diosdado Cabello said owners of unregistered vehicles will be compelled to pay international prices at the pump.

"Those who do not complete the vehicle census won't get subsidized gasoline," Cabello said. "If they want to pay the international price for gasoline they can pay it and shouldn't whine afterwards."

President Nicolas Maduro last month ordered the ruling party to conduct the census as part of an evolving plan to limit consumption of dwindling fuel supply from state-owned PdV's crippled refineries. The shortfall in domestic fuel production has led the government to import about 125,000 b/d of finished gasoline from the US and other suppliers at international prices.

The imports are sold locally at heavily subsidized prices, forcing PdV to absorb losses of over $10bn a year, according to the energy ministry.

The government also hopes that tightening controls on fuel sales will curb smuggling, mainly to Colombia.

Protests against the census have been ignored by the autocratic government, which appears confident that threatening to charge international prices for gasoline and diesel will compel drivers to comply.

As of yesterday over 1mn vehicle owners completed the census, showing valid vehicle titles and homeland identity cards, a senior PSUV official tells Argus.

The census requirements include a valid vehicle ownership registration and a national homeland identity card that is issued by the PSUV independently of the transportation ministry and national identity card and passport service (Saime).

Critics say the census is a way to reward political loyalty and raise revenue from Venezuelans who resist official efforts to expand the homeland identity system, which is widely mistrusted among government opponents. Food handouts are already restricted to card carriers.

Venezuela's national vehicle fleet includes around 3.35mn cars, 326,000 heavy trucks, 385,000 pickup trucks, 100,000 buses, 62,000 licensed taxis and 220,000 motorcycle taxis, according to the transportation ministry. The number of licensed motorcycle taxis vastly understates the number of motorcycles for which there is no accurate registry, the ministry adds.

About half of the country's cars are inoperative because of shortages of parts such as tires, spark plugs and batteries. Independent public passenger and cargo transport groups say over 85pc of trucks and buses are idle for the same reason.

Senior officials including a military aide to president Nicolas Maduro deny that the government is drafting plans to ration fuel. But a palace official tells Argus that "strict rationing" is contemplated for all vehicle owners, with fuel rations prioritized for buses and trucks.

Private cars will be "at the end of the line," the palace official said, adding that rationing plans have not been finalized yet.

Owners of motorcycle taxis, who largely come from the lowest socioeconomic rungs, would receive preferential treatment, the official added.

The potential two-tier fuel market that appears to be emerging likely will create a black market that could be exploited by profiteers tied to PdV, which controls all fuel distribution.

The government "conservatively" estimates current motor fuel demand at about 350,000 b/d, according to the energy ministry.