Analyses
10 aoû 21

Wikifleet update Venezuela & Uruguay: It's not only about petrol prices

The largest expense impacting the bottom line for most fleet managers is vehicle energy costs and there is a stark difference between the two countries we are eying today, Uruguay and Venezuela

For more information on the state of the fleet market in Latin America and other fleet and mobility topics in the region, visit the Latin America regional stream of the Global Fleet Conference 2021.  

When we talk energy costs, this means petrol in Latin America and just like the rest of the world, this has been on the rise in recent months owing to the increasing cost of crude oil.  

While its priced dropped to US$20 per barrel in April 2020, it has been rising significantly since then, reaching approximately US$70 in August 2021, nearly four times more. As for the price at the pump, the world average on 26 July was US$1.19 per liter for gasoline and US$1.06 for diesel.  

West Texas Intermediate (WTI or NYMEX) crude oil price per barrel on the rise from April 2020-August 2021 (source: macrotrends.com)

In Uruguay, petrol stations are home to some of the most expensive fuel in Latin America. While petrol averages US$1.50 per liter, diesel cost in the range of US$1.04, according to a July 2021 update on Global Fleet's Wikifleet page on the country. 
 
In Venezuela however, as its petrol supply has been nationalized, it has long been home to the cheapest fuel in the world, being only US$0.02 per liter for petrol and less than US$0.01 for diesel. 
 
Although this may sound good for a fleet manager, getting the fuel you need today may be a bit challenging as supply is lacking in some cities owing to the severe economic pressures in the country.  

The automobile industry, just like many others in the country, has been hit extremely hard.  Only 87 vehicles were produced in 2020 and just one in the first semester of 2021, according to Wikifleet Venezuela. 

As for Uruguay, its economic scenario is much better.  Although its economy was hit in 2020 in wake of the COVID-19 pandemic just like the rest of the world, GDP looks to be rising this year an inflation is slowly coming under control. 

Eye on electrification 

Although Venezuela has extremely low electrical energy costs, let's focus on Uruguay as its neighbor to the north is still working on its economic recovery. 

Following the launch of a 300km electric highway which offers guaranteed power charging between Colonia and Punta del Este, Uruguay's goal is to build a highway network covering the entire country. Charging stations will be installed every 60km as international standards mandate. Electric vehicles in the country have ranges of some 300km. 
 
Although the average electricity price per KWh for households is US$0.20 (40% higher than the world average), the price for businesses is only US$0.09 (25% less than the world average), according to Wikifleet Uruguay. 

For more information on these countries and others, visit Wikifleet, a collaborative effort by the Global Fleet team covering five regions and nearly 50 countries around the world. 

Authored by: Daniel Bland