President Hugo Chávez of Venezuela announced Aug. 28 that he would begin nationalizing the wholesale distribution of fuel in Venezuela. Under the nationalization process, the large distributors of fuel in Venezuela would have to begin a 60-day negotiation to sell their business operations to the state-run oil company, Petroleos de Venezuela (PDVSA). Exxon, British Petroleum and Chevron are some of the big companies being affected by the new wave of nationalizations.
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The nationalizations would mean that wholesalers must sell all storage facilities, fuel pumps and trucks to the Venezuelan state. The new laws still guarantee the right to privately own gas stations.
The new measure is only part of a project aimed at controlling the sale of fuel at the wholesale level in Venezuela. Over the past three years, the revolutionary government has nationalized the major oil fields in Venezuela and has stabilized gas prices throughout the country, currently set at 12 cents a gallon. During the same time, distributors have smuggled gas across the border to Colombia and withheld supplies. These efforts are intended to create resentment towards the revolutionary government.
The new measures will guarantee the proper and timely distribution of fuel throughout the country. They are also aimed at recovering revenues lost to the smuggling operations. Even more importantly, according to Angel Rodríguez, president of the Commission of Energy and the Mines in the National Assembly, the workers of these companies will be given higher pay along with better benefits, which many do not currently receive. The nationalizations will also help centralize and modernize the distribution process.
These nationalizations come on the heels of the Aug. 1 announcement of the nationalization of the Bank of Venezuela and the nationalization in April of both the cement and steel industries. In the past two years, the revolutionary government has also nationalized the electricity, communication and oil production sectors. Each move has been celebrated by the Venezuelan working class, which has experienced the largest income surge in the country’s history. Each wave of nationalizations has targeted key sectors of the economy, ensuring continued economic growth and protection of the revolution against the imperialist-backed oligarchy.
The oligarchy and its media outlets immediately criticized the new announcement. Opposition lawmaker Luis Tascón stated, “I’m warning the population that if this law is approved, we are going to see shortages in the short term.”
President Chávez denounced these threats and manipulated shortages as an attempt to destabilize his government and the Bolivarian revolution.
The major distributors have created artificial fuel shortages through pilfering, contraband export and deliberate sabotage. The nationalization of the domestic distribution of fuel is intended to provide stability and economic gains for the Venezuelan people.
Meanwhile, the three-month negotiating period for the cement nationalization came to a close. Cemex, a Mexican multinational company targeted for nationalization, refused to accept the offers for compensation by the revolutionary government. Two foreign corporations, France’s Lafarge and Switzerland’s Holcim, reached agreements with the revolutionary government on their cement facilities.
On Aug. 19, soldiers and Cemex workers triumphantly seized various Cemex factories throughout the country. Since then, Cemex spokespeople have tentatively agreed to the nationalization proposal of the government, though compensation is still a subject of intense debate. In the steel industry, the Argentine-Italian conglomerate Techint has utilized the same stalling techniques. President Chávez has announced that time has also run out for the negotiations in that sector.
Each nationalization has been a step forward for the working class in Venezuela. The efforts by the revolutionary government have helped stabilize prices on everyday commodities as well as protect the gains of the people from the countless attacks by the oligarchy and their backers in Washington. According to the U.N. Charter, the right to nationalize industries is the prerogative of any sovereign state. The Venezuelan people have every right to nationalize anything and everything they see fit in order to meet their needs.
