Full Breakdown
U.S. Fuel Exports Spark Private Market in Cuba
8/12/2026, 4:42:20 AM
U.S. Fuel Exports Spark a New Private Sector
Since February, the U.S. Commerce Department’s limited-license exception has permitted American firms to ship gasoline and diesel to Cuban private businesses. Between February and May, about 900,000 barrels of fuel arrived, enough to meet roughly nine days of the island’s total energy demand. The imports have been resold through a visible black market, with prices reaching $10 per liter ($38 per gallon) in the spring before easing as volumes grew. Private entrepreneurs now operate wholesale distribution to other businesses, and a model-led advertisement for the company A Granel shows diesel containers set to “Gasolina” music.
Policy Shift and Historical Sanctions
The United States has maintained a comprehensive oil embargo on Cuba since the 1960s, a policy intensified after the 2019 removal of Venezuelan President Nicolás Maduro’s government from the sanctions list. Traditional fuel supplies from Venezuela and Mexico stopped after the U.S. ousted Maduro in January, leaving Cuba’s state-run energy system strained. In June, Cuban lawmakers approved a reform package intended to open the energy sector to private and foreign investors, though full implementation remains pending.
Scale of Imports and Emerging Black Market
- Import volume: 900,000 barrels (Feb-May).
- Black-market price peak: $10 per liter ($38 per gallon).
- Retail price reported: $5 per liter ($19 per gallon) at a convenience store.
- Wholesale price reported: $2.50 per liter for a 940-liter tank.
- Business participation: By late July, nearly 200 Cuban firms received permission to wholesale fuel to other private companies.
Government Reactions and Official Comments
Prime Minister Manuel Marrero Cruz announced in late July that Cuba had approved its first foreign-investment venture dedicated to importing and selling fuel, though he did not name the company. President Miguel Diaz-Canel, on July 29, condemned Washington’s “genocidal siege” and stressed that reforms were not intended to appease the United States, rejecting “massive privatization of national assets.”
U.S. State Department spokesperson Tommy Pigott said Washington recognized “the significant humanitarian needs” of Cubans while accusing Cuban officials of mismanaging resources, but offered no evidence. Energy expert Jorge Piñón noted that the licensing regime appears favorable but lacks monitoring to ensure fuel stays out of government hands. Former Treasury investigator Jeremy Paner observed that large U.S. firms remain cautious about shipping fuel due to sanctions complexity.
Implications for Cuban Society
With average government salaries around $10 per month (?6,700 pesos), imported fuel remains unaffordable for most of Cuba’s 9 million residents. Sociologist Mayra Espina argues that the limited, expensive U.S. fuel supply prevents a total collapse of services but deepens inequality, as only those who can pay the high black-market prices gain reliable transport and power. The emerging private distribution network therefore offers a glimpse of market-based activity while highlighting the growing gap between affluent consumers and the broader population still dependent on state-run, under-funded services.
