🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Cuba runs short on fuel at pump as energy crisis festers

Published 12/13/2024, 04:58 PM
Updated 12/13/2024, 05:01 PM
© Reuters. A driver checks the line as he waits for gasoline in Havana, Cuba, December 13, 2024. REUTERS/Alexandre Meneghini

HAVANA (Reuters) - Cubans still reeling from months of hours-long blackouts now have a new problem on their hands: fuel shortages.

Many gas stations across the island have been shuttered for days as an unusually severe shortfall has left the nation nearly devoid of gasoline and diesel, stranding motorists and sprouting seemingly interminable lines at the pump in Havana.

"We have been waiting for a fuel truck to arrive for three days," said Armando Corrales from the driver's seat of his gray Kia SUV at a gas station in the capital. "People have slept here in line so they don't lose their spot."

The latest crisis comes on the heels of three nationwide blackouts in two months that left millions in the dark for days, prompting the communist-run government to temporarily close schools and non-essential industry.

Cuba has yet to provide an explanation for the most recent shortfall.

Only a comparative trickle of fuel has been served in Havana since Wednesday, according to a government application that records deliveries to individual gas stations.

Officials have previously blamed fuel shortages on the decades-old U.S. trade embargo, which complicates Cuba's financial transactions, making it more difficult for the government to purchase fuel on the spot market.

Cuba's long-time allies have reduced fuel shipments this year. Venezuela has sent 44% less crude and fuel to the Caribbean island during the January to November period, according to tanker monitoring data and documents from Venezuela's state company PDVSA.

Mexico, which has become a regular supplier to the island, has made up for some of the difference. But both Venezuela and Mexico send mostly crude to Cuba, whose obsolete refineries must use it to make gasoline and diesel for cars, trucks and generators.

Cuba this year began selling fuel in dollars at non-subsidized prices on par with regional neighbors. The government said this was necessary, in part, to raise enough foreign currency to ensure a steady supply at the pump.

© Reuters. A driver checks the line as he waits for gasoline in Havana, Cuba, December 13, 2024. REUTERS/Alexandre Meneghini

Even those far pricier "dollar gas stations" faltered this week, said Jorge Figueredo as he waited to pump fuel in the Havana suburb of Miramar.

"The lines are now miles long even when you go to buy fuel in dollars," Figueredo said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.