The state-run media outlet, Cubadebate, announced on Tuesday that beginning May 15, fuel prices sold in foreign currency in Cuba will no longer be fixed, shifting to a floating system that reflects the "actual costs of each operation." Cubadebate directly attributed this change to the U.S. embargo and executive orders from President Donald Trump.
In a statement on social media, Cubadebate claimed that the "intensification of the economic, commercial, financial, and energy blockade by the United States government against the Cuban people, exacerbated by the executive orders of January 29 and May 1, 2026, from President Donald Trump, has led to a drastic reduction in fuel supplies."
The regime, through the Ministry of Finance and Prices, acknowledged that a fixed pricing model is "economically unsustainable under current conditions," a rare admission contrasting with years of subsidies touted as socialist achievements.
Under this new system, authorized economic entities—including state companies and private SMEs—will set their own retail prices based on factors like supplier, freight, supply route, insurance, and international market fluctuations. Consequently, varying prices may coexist at different gas stations within the same city.
The supply crisis has deeper structural roots that the regime overlooks: Cuba produces only 40,000 to 45,000 barrels daily out of the approximately 100,000 it requires, relying on external imports for 70% of its needs, primarily from Venezuela and Mexico.
Executive Order 14380, issued on January 29, 2026, imposed secondary sanctions on any country or entity supplying oil to Cuba, resulting in the interception of at least seven tankers bound for the island, while Mexico temporarily halted Pemex shipments that same month.
As a partial measure, Washington permitted fuel exports exclusively to the Cuban private sector—not to the government or state entities—and since February 2026, around 30,000 barrels in ISO tanks have been shipped to the port of Mariel, amounting to over $11 million between January and March.
However, this fuel arrives at costs exceeding $2.50 per liter after CUPET tariffs, with its use restricted to business self-consumption, limiting its effect on the general population's supply.
In the informal market, gasoline prices soared to between 4,000 and 6,000 Cuban pesos per liter in April 2026, equivalent to $7 to $11 at the informal exchange rate, underscoring the severity of the shortages affecting the populace.
Cubadebate also reported that "in recent months, there has been an intensification of the blockade, through threats and coercion, to prevent ships from docking or suppliers from selling," describing the situation as an "international scenario made more expensive by wars and geopolitical tensions."
The public's reaction on social media was one of skepticism and open criticism of the government: "What more do we need to declare ourselves capitalists?" asked one user, while another described the situation as "wild capitalism, mixed with feudalism," questioning the consistency of a system that continues to present itself as socialist while deregulating the prices of a basic commodity.
Understanding Cuba's Fuel Pricing Crisis
What prompted Cuba to change its fuel pricing model?
Cuba shifted to a floating fuel pricing model due to economic pressures, largely attributed to the U.S. embargo and executive orders from President Donald Trump, which have led to a significant reduction in fuel supplies.
How will the new fuel pricing system affect Cuban consumers?
The new system allows different prices at various gas stations, depending on factors like supplier and market conditions. This means consumers may face higher and more variable fuel prices.
What are the main sources of Cuba's fuel imports?
Cuba relies on imports for 70% of its fuel needs, mainly sourcing from Venezuela and Mexico.