Post by scumbuster on Jan 25, 2021 6:54:02 GMT -5
Venezuela Food Production at High Risk Due to Shortages of Diesel
CARACAS – The soaring prices of food will certainly become less of a headache for the Venezuelan population should essential products for living disappear for good from shelves at grocery stores and supermarkets nationwide as a result of acute shortages of diesel due to the lack of imports and national production of the fuel.
As a matter of fact, both local transport companies and food producers have been reporting supply disruptions that have “awakened the ghost of an economic standstill” as reported by TalCual on Friday.
The Caracas-based daily said that three months after the administration of former US President Donald Trump announced the suspension of the exemption of sanctions over state-owned oil company Petróleos de Venezuela, S.A. (PDVSA), the oil-rich nation is going through severe disruptions of diesel supplies with industry experts warning about the serious consequences this will bring to the economy.
The weak demand for diesel comes less than a year after the shortages of gasoline became worse, which has heavily affected the shipments of some types of merchandise and, mainly, the own transport companies.
Armando Chacín, head of the Venezuelan Livestock Federation (Fedenaga), told TalCual that some states across the country – mostly Apure in the Llanos (plains) – have been facing shortages of diesel for up to four long months.
For his part, Roger Figueroa, president of the Venezuelan Chamber of Dairy Industry (Cavilac), underscored that the sector has reduced its already precarious production by 15% since December due to the lack of diesel, essential for the transportation units, plants, and generation of electricity.
Meanwhile, Venezuelan oil union leader Iván Freites said that the national output of diesel has been insufficient to make ends meet. From 170,000 barrels per day (bpd) produced at the Paraguaná Refining Complex (CRP) in Falcón state, only 20% of that amount (34,000 bpd) is diesel, while the Puerto La Cruz refinery has recorded a production of 12,000 bpd of diesel out of the total fuel production of 60,000 bpd.
“All this gives us a daily production average of 46,000 barrels of diesel. National production is in the neighborhood of 140,000 barrels due to the power plants and transport, a reason for which we have a deficit of 94,000 barrels,” Freites was quoted as saying.
www.laht.com/article.asp?ArticleId=2498486&CategoryId=10717
CARACAS – The soaring prices of food will certainly become less of a headache for the Venezuelan population should essential products for living disappear for good from shelves at grocery stores and supermarkets nationwide as a result of acute shortages of diesel due to the lack of imports and national production of the fuel.
As a matter of fact, both local transport companies and food producers have been reporting supply disruptions that have “awakened the ghost of an economic standstill” as reported by TalCual on Friday.
The Caracas-based daily said that three months after the administration of former US President Donald Trump announced the suspension of the exemption of sanctions over state-owned oil company Petróleos de Venezuela, S.A. (PDVSA), the oil-rich nation is going through severe disruptions of diesel supplies with industry experts warning about the serious consequences this will bring to the economy.
The weak demand for diesel comes less than a year after the shortages of gasoline became worse, which has heavily affected the shipments of some types of merchandise and, mainly, the own transport companies.
Armando Chacín, head of the Venezuelan Livestock Federation (Fedenaga), told TalCual that some states across the country – mostly Apure in the Llanos (plains) – have been facing shortages of diesel for up to four long months.
For his part, Roger Figueroa, president of the Venezuelan Chamber of Dairy Industry (Cavilac), underscored that the sector has reduced its already precarious production by 15% since December due to the lack of diesel, essential for the transportation units, plants, and generation of electricity.
Meanwhile, Venezuelan oil union leader Iván Freites said that the national output of diesel has been insufficient to make ends meet. From 170,000 barrels per day (bpd) produced at the Paraguaná Refining Complex (CRP) in Falcón state, only 20% of that amount (34,000 bpd) is diesel, while the Puerto La Cruz refinery has recorded a production of 12,000 bpd of diesel out of the total fuel production of 60,000 bpd.
“All this gives us a daily production average of 46,000 barrels of diesel. National production is in the neighborhood of 140,000 barrels due to the power plants and transport, a reason for which we have a deficit of 94,000 barrels,” Freites was quoted as saying.
www.laht.com/article.asp?ArticleId=2498486&CategoryId=10717