Caracas, May 7 (PL-RHC) -- Venezuelan authorities are evaluating various measures to combat the fuel smuggling to Colombia and the Caribbean islands that has caused millions in losses to the national economy.

Zulia state authorities have said they expect to activate an automated system to control fuel sales starting in the second half of 2014.

The regional journal, Panorama, reported that authorities will install a chip in automobiles, to help stem the smuggling that generates $1.5 billion in losses annually.

By using the device in vehicles traveling in Táchira and Zulia states, losses of $442 million a year were avoided in 2011 and 2012.

This has led authorities to consider expanding the system to all territories in Zulia. In Táchira, the automation plan has reduced fuel smuggling in the region by forty percent.