CARACAS – Venezuela’s gas station owners have declared a state of emergency, citing razor-thin profit margins that threaten the viability of their businesses. The move, announced by the Federation of National Associations of Hydrocarbon Entrepreneurs (Fenegas) on February 26, 2026, is a desperate plea for government intervention to address a deepening crisis in the country’s fuel distribution network. The core issue, according to Fenegas, is the vast discrepancy between subsidized gasoline prices and the rising costs of operation, leaving station owners with as little as one cent of profit per liter sold.
The declaration comes after years of unheeded requests for relief, as detailed in a letter sent to the government of Delcy Rodríguez, as reported by Reuters. Fenegas is urgently calling for the unification of gasoline prices across Venezuela, a country where a two-tiered system exists: heavily subsidized fuel selling for $0.50 per liter alongside a “super premium” option priced at $1.00 per liter. While the premium option offers a better margin, it’s not widely available, leaving the majority of stations reliant on the subsidized rate.
A Crisis of Margins
The current situation is unsustainable, according to sources close to Fenegas. Operators report earning approximately one cent of a dollar per liter, a figure insufficient to cover basic expenses like salaries and maintenance. “If you sell 50,000 liters a month, you only earn USD 500,” a source told Reuters. This financial strain is compounded by a complex web of regulations and outstanding debts owed by the state-owned oil company, Petróleos de Venezuela S.A. (PDVSA). The organization, representing gas station owners nationwide, is seeking a comprehensive review of the current market structure.
Fenegas is requesting a meeting with PDVSA to discuss four key areas, as outlined in a recent statement reported by PETROGUIA. These include the adjustment of the commercialization margin for service stations, addressing outstanding debts from PDVSA, reviewing the subsidized gasoline scheme, and evaluating the existing legal framework governing the sector.
PDVSA Responds, Talks Begin
In response to the escalating crisis, PDVSA, under the leadership of President Pedro Ramon Tellechea and Vice President of Commerce and Supply Juan Carlos Diaz, has initiated discussions with Fenegas. The talks, which began on February 26, 2026, will be structured around four working groups, each focusing on a specific aspect of the problem. These groups will address the commercialization margin, outstanding debts, the gasoline subsidy program, and the legal framework surrounding gas stations, according to PETROGUIA.
The first working group will specifically focus on identifying and updating the commercialization margin, taking into account factors such as branding, working capital, and municipal taxes. The second will tackle the issue of outstanding debts owed by PDVSA, including the removal of an exemption from the Large Financial Transactions Tax (IGTF), and improvements to the fuel supply chain. A third group will evaluate the impact of the subsidized gasoline and diesel programs, including the use of the Biopagos technology and the accumulation of debt through the Patria platform.
Impact on Consumers and the Economy
The potential consequences of widespread gas station closures are significant. Venezuela, despite possessing vast oil reserves, has struggled with fuel shortages in recent years, often leading to long lines and disruptions to daily life. A collapse of the private gas station network would exacerbate these problems, placing an even greater burden on the already strained state-run distribution system. The situation also raises concerns about the broader economic impact, as the fuel sector supports numerous related industries and provides employment for thousands of Venezuelans.
The current dual-pricing system, while intended to provide affordable fuel for citizens, has created distortions in the market. Some stations operate on the subsidized rate, accepting payment in bolivars at an extremely low equivalent to USD 0.02 per liter, while others accept US dollars. This inconsistency adds to the complexity of the situation and contributes to the financial difficulties faced by station owners. Infobae reports that the lack of a unified pricing structure is a key demand of Fenegas.
Next Steps and Ongoing Negotiations
The negotiations between PDVSA and Fenegas are ongoing, with the next steps involving detailed discussions within the four working groups. Fenegas is also seeking a review of the legal framework governing the sector, including the management contracts and other relevant laws. The outcome of these talks will be crucial in determining the future of Venezuela’s gas station network and ensuring a stable supply of fuel for the country’s citizens.
Fenegas, led by President Enrique Chacón, can be contacted via email at [email protected] or by phone at +584161320603, according to CLAEC. The organization continues to advocate for a sustainable solution that addresses the financial challenges faced by gas station owners and ensures the continued availability of fuel throughout Venezuela.
The situation remains fluid, and further updates will be provided as they become available. The outcome of these negotiations will have significant implications for Venezuela’s energy sector and the daily lives of its citizens.
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