5,000 Venezuelans Line Up to Buy Oil at 2:00 AM for a Penny a Liter

Venezuelans started lining up at 2:00 AM for essentially free motor oil. By 11:00 AM the line was estimated at 5,000.

In a two-day government sale, Venezuelans Line Up for Motor Oil as Hyperinflation Soars

Thousands of Venezuelans began lining up before dawn Friday outside a Caracas stadium, hoping to get a hold of a prized item: motor oil.

“I got here at 2 a.m.,” said Carolina Estrella, a 32-year-old office manager, in line to purchase 12 liters for her family’s three cars. National guard officers estimated about 5,000 people were in line by 11 a.m.

The two-day-only sale was announced by Venezuela’s state oil giant, Petroleos de Venezuela SA, Thursday and at 300,000 bolivars per liter, the price is a steal compared to the 25 million bolivars ($8) charged for any imported kind at a car shops around Caracas.

There is always a shortage of goods and long lines when government sets a price below market cost.

Socialism has huge costs.

Mike "Mish" Shedlock

Comments (14)
No. 1-14
2banana
2banana

Sanders, Kennedy, Penn, Obama, Carter, Moore and Stone were not available for comment?

FelixMish
FelixMish

Point a gun at the seller and you get lines around the block. Point a gun at the buyer and you get a black market.

I find the asymmetry interesting.

thimk
thimk

the oil will be used for barter, a de facto currency . so this is what maduro meant with the Petro.!

Onni4me
Onni4me

There was an excellent documentary by a guy that visited Cuba every decade or so and also at the same time sometimes saw Castro and then 3 brothers that had a small farm. At early stage everything seemed fine, but slowly the cows were stolen and eaten, the houses started to be on the brink of a collapse, water had to be fetched from far and an endless stream of problems. Those who could, left the country. The devastating effect doesn't show itself immediately and occasionally the people might even benefit somewhat but the trend is guaranteed, a slow downwards slope towards hopelessness.