October 23: The Ration List

Following a report by Reuters claiming that Venezuela was importing light crude oil for the first time in its history, PDVSA announced today that it had purchased 2 million more barrels of oil from Algeria.

The first shipment – also from Algeria – is scheduled to arrive in the country on October 26. While the arrival date of this second shipment was not formally announced, PDVSA hired the oil supertanker VLCC Boston, which is being sent to the port of Arzew, Algeria and is scheduled to arrive there on October 25.

Earlier this week, PDVSA said that the light oil – known as Saharan Blend – will be used to dilute the extra heavy oil Venezuela produces.

Aside from the two shipments from Algeria, Venezuela has also ordered two other shipments from Russia, which it bought through PetroChina.

Estimates put Venezuela producing 3.02 million barrels of oil per day last year, placing it on the #9 spot of oil producing nations. News of Venezuela being forced to import light crude oil for the first time in its history has alarmed critics, who view the news as evidence of mismanagement and incompetence at PDVSA.

Pharmacy Chain Beings Formal Rationing Process

Farmatodo, a national pharmacy chain store, released a list today of high-demand products it is being forced to ration to curb reselling.

The list includes 33 items. It contains basic necessities such as cooking oil, sanitary napkins, toothpaste, shampoo and milk. It also contains other important products such as birth control pills, margarine, napkins, coffee and razors. The limits are set on a weekly basis.

Luis del Llano, the vice-president of Farmatodo corporate relations said that the decision to make the list was taken in order to curb the fact that some people were buying their products with the intent of reselling them to others who were having difficulty finding the same products. Del Llano said:

We noticed that many people were using our stores as a kind of supplier for their irregular sales [businesses]. The situation became unsustainable and our staff were often threatened when they tried to control the re-sellers.

According to Ultimas Noticias, the scarcity crisis and stiff price controls in the country have created a lucrative black market for in-demand goods. For example, while a 10-tablet box of acetaminophen costs Bs. 5 in stores, it can go for as much as Bs. 50 on the street. Similarly, while Cozaar costs Bs. 25 in stores, it can be resold for as much as Bs. 200.

The list can be seen below:

In English, the sign reads:

Dear Costumers

We remind you that our main objective is to contribute to having medicine and [other] products in stock for all of you. For this reason, we inform you that the sale of products will be administered in the following way:

The list has been placed at all Farmatodo cash registers, and cashiers have been instructed to ask to see I.D. before purchases are made.