Driver Nestor Hernandez described Iranian petrol as "an illusion that has lasted a month" in Maracaibo, Venezuela's former oil hub, where fuel lines stretch for hours despite the country's vast reserves.
Residents like Pedro Perales in Puerto Ordaz endured two days waiting in their cars for a half-tank ration, highlighting systemic shortages that have normalized long queues and sleepless nights for fuel.
Venezuela, which exported 500,000 barrels daily to the U.S. in 2018, now relies on allies like Iran after U.S. sanctions crippled its oil sector. Tehran delivered 1.5 million barrels via five tankers in May, but the relief was temporary.
President Nicolas Maduro's June 1 fuel price hike, raising high-octane gasoline to 50 cents per liter, failed to resolve the crisis. Production has plummeted to a quarter of 2008 levels, with refining capacity operating at just 12% of potential in the first quarter of 2020.
Sanctions and Infrastructure Collapse ¶
Analysts attribute the decline to decades of underinvestment, not just sanctions. OPEC data shows Venezuelan output fell below 600,000 barrels per day in June 2020, with the refining system collapsing alongside production.
Maracaibo Chamber of Commerce head Ezio Angelini called the situation "a death foretold," citing years of declining domestic gasoline production. "We knew this would happen," he said.
International Tensions ¶
The U.S. has targeted Iran's shipments, issuing a warrant to seize four tankers linked to the Revolutionary Guards. Economists warn sustained imports face hurdles due to cash flow shortages and escalating sanctions.
While Caracas' stations have recovered from March's lockdown dry spells, the broader crisis persists, with queues returning within weeks of Iran's deliveries.
