Venezuela dollarizes diesel in more than 100 service stations

Caracas. – Venezuela’s state oil company PDVSA has ordered more than 100 gas stations to start selling diesel in dollars (USD), cutting a subsidy that allowed truckers and public transport drivers to fill their tanks almost for free, according to documents and sources cited by Archyde.com.

At the end of 2021 in Venezuela, a diesel retail price of USD 0.50 per liter had been set for some stations, while a parallel system in local currency continued to operate, which allowed most drivers to access the subsidy.

In recent weeks, however, the demand for trucks and buses seeking to fill their tanks at subsidized prices led PDVSA to expand the number of fuel filling stations in dollars.

The new dollar-denominated diesel price was communicated by the oil company to service stations this month, according to a copy of one of the letters seen by Archyde.com and dated May 26.

Sale of diesel at the same price as gasoline

“From now on, diesel will be sold at the same price as gasoline,” said a person who received one of the letters.

Analysts expect dollar-denominated diesel sales to contribute to higher freight rates, which would accelerate inflation.

Meanwhile, as the diesel subsidy has not been fully withdrawn, demand at stations that still charge in local currency is increasing.