Venezuela’s Fuel Shortage Set to Get Worse After Refinery Halted

  • Gasoline production stopped after failure in multiple units
  • Second oil spill in recent weeks complicates restart efforts

The sun sets over El Palito oil refinery in Puerto Cabello, Venezuela.

Photographer: Meridith Kohut/Bloomberg
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Venezuela’s fuel crisis is poised to deteriorate even further after one of its biggest refineries was halted over the weekend following a nearby oil spill.

Petroleos de Venezuela SA’s El Palito refinery stopped producing gasoline after its fluid catalytic cracker was shut due to a malfunctioning valve, said union leader Ivan Freites. The refinery was producing about 20,000 barrels-a-day of the fuel when it was shut, he said. The crude and vacuum distillation units were also stopped, according to a person familiar with operations.