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Venezuela To Ration Electricity After Colombia Cuts Gas
Pietro D. Pitts, Corina Pons and Anatoly Kurmanaev
bloomberg.com
Venezuela’s government announced the start of electricity rationing in western Zulia state as well as water rationing in Caracas to reduce demand on the power grid, a day after Ford Motor Co. (F)halted production in Latin America’s largest oil exporter.
The second-largest U.S. automaker joins competitor Toyota Motor Corp. (7203) and Dutch truck-maker CNH Industrial NV (CNHI) in suspending assembly in the South American country because of the difficulty of obtaining dollars to import parts from the government.
Shortages of everything from water to car parts and flour to pregnancy tests come after three months of protests against the government of President Nicolas Maduro that have left at least 41 people dead. The government yesterday said it will start rationing electricity and water as drought drains hydroelectric reservoirs and water tanks.
“This is another acknowledgment that the country is not working,” Michael Shifter, president ofInter-American Dialogue in Washington, said in a phone interview yesterday. “If this spreads to the rest of the country and becomes a nationwide rationing of electricity, it will significantly cut into Maduro’s support.”
to read more: bloomberg.com
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