Another Day, Another Control In Venezuela

July 8, 2012

Given the huge arbitrage between gasoline prices in Venezuela and Colombia (There is a factor of 65 difference in price!), contraband between the two countries is a very profitable enterprise. But rather than attacking the problem at its roots, the Chavez Government always has to invent a new form of control, when it can not impose order in a more rational way.

Thus, the Government introduced a form of rationing, which they call the “chip”, which is nothing more than a bar code attached to the windshield of your car. You are assigned a monthly quota and before you are dispensed gasoline, the gas station reads it and if you have not consumed your quota, the gas is dispensed

The system was first implemented in Tachira state, where it raised some noise. But now that the Government wants it installed in what is probably the most anti-Chavista state in the country, Zulia, it has become a campaign issue as Zulianos feel they are being picked upon for their anti-Government stance.

But the truth is that it is the huge difference in gas prices which promotes this business, but it is not the individual cars that contribute the most to the problem, but large vehicles with huge tanks, which cross the border to Colombia under the eyes of the Venezuelan National Guard, which has been duly paid off to look the other way.

Of course, implementing the system is a mess, long lines, the sale of the free chip for a price, being able to acquire a second chip if you want and accusations that the “chip” is sold to the Government by the son of the Chavista candidate for Governor of Zulia. The whole thing is a mess, as people now will likely go to other adjacent states in Venezuela in order to fill up when their quota runs out.

But more ominously, people fear that the chip will become a nationwide system and the perverse gasoline subsidy will become a rationing system as the price of gas has not been changed in 13 years.

Thus, rather than deal with a problem of their own making, the Chavez administration simply creates another expensive and perverse control mechanism, which is unlikely to stop the real problem of the “bachaqueros” (Professional gas smugglers) but creates yet another from of control and supervision.

30 Responses to “Another Day, Another Control In Venezuela”

  1. […] UPDATE: Gasoline rationing, Hugo style, Another Day, Another Control In Venezuela. […]

  2. […] UPDATE: Gasoline rationing, Hugo style, Another Day, Another Control In Venezuela. […]

  3. […] toch? Op de website van de collega’s van The Devils Excrement lees je alles over de geniale oplossing die de nationale regering voor het probleem heeft bedacht. Delen:Vind ik leuk:LikeBe the first to […]

  4. ErneX Says:

    Sorry for steering this post out of topic, but the guy said yesterday (once again) he’s completely free of cancer. Thoughts?

    • Ronaldo Says:

      It is too early. Years must pass before a cancer free statement can be verified. Chavez is still hurting and it shows. Radiation treatment itself can cause malignancies and more cancer. Chavez will likely not have a recurrence before Oct 7th. It should be stressed that if Chavez dies in office, all of his incompetent staff will take charge.

    • island canuck Says:

      Here’s a photo of him from yesterday.

      Bloated face from the steroids he’s taking, covered in a thick make-up, coloured hair and after every appearance he disappears for 2 or 3 days.

      Is he without cancer? – not in my humble opinion. That statement is to keep the faithful followers in line as none of the possible options has a chance against HCR.

    • Dr. Faustus Says:

      This caught my attention as well. Cancer free? That statement is a sure indicator of the complete insanity surrounding the upper echelons of this government. Who amongst them really believes that? Why can’t these people just be honest with his true medical condition? The day that Chavez is suddenly re-admitted to a local hospital will bring this house-of-cards crashing down.

  5. Kepler Says:

    Why isn’t there more information about Arias Cardenas’ son?
    This is so disgusting!

    Very OT; the reason why the horse on the Venezuelan coat of arms looks now to the left just got itself a picture with another teeny “star”

  6. anonimo Says:

    solo puedo alegrarme por esa iniciativa del comando de campana chavista de henrique caprilez en el zulia, es que cada día que pasa nos la ponen mas facil.
    no hay ni que hacer campana, ellos la hacen por nosotros.

  7. Ronaldo Says:

    The gas station employees will do quite well under this system. They can sell gas to those over their quota for some quick bolivares. Just get a chip of some Chavista official without a quota and use it to sell to everyone. I doubt that government record keepers can or will search purchase records. After all, this is Venezuela where a bribe is the easiest way to do business.

  8. Bruni Says:

    Why would a hummer owner in CCS be able to fill up his tank as many times as he/she wants and someone from Zulia or Tachira be restricted?

    If I were a Zuliana I would be mad as hell.

  9. Wanley Says:

    Bachaqueros or Pimpineros are small time smugglers. The big problem is the truckloads that go to Colombia and Brazil. The profits are split 50-50 with the military at the border. The military sit down with the smugglers and calculate the profit margins according to the capacity of the truck, usually 40.000 L. A friend of mine was interested and went down to Santa Elena, he actually spoke to the captain in charge and those were the terms negotiated. The other big smuggling operation is in Cumana ana Carupano, the big fishing boats were suposed to convert to enviromentally friendly methods, nobody did. What they did was to convert them to do long range tuna fishing. Guess what? The cargo holds were transformed to fuel tanks, huge quantities of diesel, short trip to Trinidad and back, no tunas. I guess that the arrangement is similar to the one in Santa Elena. Just take a look at the new rich in Cumana, Carupano and Santa Elena.

  10. Alberto Says:

    The business in charge of installing the “chips” is owned by Francisco Arias Cardenas’ son… These MFs just can’t get enough.

    Please take a look at this link:

  11. Jeffry house Says:

    Chip counterfeiting will become endemic. Chip-hacking will create a new skill set.

  12. Dr. Faustus Says:

    Fact (1) The price of gasoline has not risen in Venezuela for almost 12 years, give or take. Fact (2) The number of employees at PDVSA has doubled over this time period. Fact (3) Of the roughly 2.4 million barrels of oil a day produced, approx 800,000 goes to the US for real money, 400,000 is sent to China for repayment of loans and a whopping 1.2 of daily production (half !) is given away (so to speak) at Venezuelan gas stations, or sent to Cuba and Nicaragua for payment in 35 years or so. The the rest is piddled away in the Caribbean, Ecuador and Bolivia. Sobering statistics. This, my friends, has the making of a colossal economic catastrophe!

  13. ErneX Says:

    My maracuchos friends are telling the company that installs these chips or stickers is owned by Arias Cárdenas son.

    • moctavio Says:

      That is what I heard, but since I dont have confirmation, I did not want to say it explicitly.

      • ErneX Says:

        Entercrop is the name, would be good to get ahold of the company registration info. In the meantime yes, let’s just say it’s gossip.

  14. Rafael V. Lozano Moreno Says:

    Dude, this is just the first step, the gasoline rationing of this to the ration of food, just missing a step, way to the Cuba of the Castro Communist.

  15. […] Delen:Vind ik leuk:LikeBe the first to like this. Dit bericht werd geplaatst in Uncategorized. Bookmark de permalink . ← Nieuwe documentaire over voetbalgeweld in Argentinië […]

  16. Stig Hess Says:

    How is the problem with visiting cars from other states or even Colombia solved? Will they still be able to buy gas, but at a higher price? Or are they out of options if they run out of gas in Zulia or Merida states?

    • moctavio Says:

      I have no idea what happens if you come from another state. I imagine Colombians would have problems buying gas always, even before the ‘chip”

  17. John Says:

    Keep praying for a return of the cancer. I will pray with you.

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