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U.S. fuel exception to Cuba fuels black market in island energy shift
A Commerce Department exception has enabled U.S. gasoline and diesel deliveries to private businesses, after oil shipments from Venezuela and Mexico ended when the U.S. ousted Nicolas Maduro in January.
Cuba’s energy sector is seeing early, uneven changes as a Commerce Department exception allows U.S. companies to export fuel to private businesses, according to Reuters. The outlet describes a mix of shortages and informal sales, with gasoline priced out of reach for many households and diesel being marketed through social media, as the U.S. maintains its oil embargo against the Cuban government.
Reuters reports the embargo has triggered a chaotic black market and left state-run services strained for years, even as U.S. Coast Guard cutters patrol nearby waters and sanctions have deterred tankers from sailing. The article says oil shipments from Cuba’s traditional suppliers Venezuela and Mexico ended after the U.S. ousted Venezuelan President Nicolas Maduro in January.
The new fuel flows, Reuters adds, are reaching private restaurants, retailers, and taxis, representing what the outlet calls the first significant landings of U.S. fuel on the island since Fidel Castro nationalized refineries after the 1959 revolution.
While the fuel exception provides some relief by helping consumers keep generators running and by powering home pumps that support water distribution, Reuters says it is also widening wealth disparities as those able to access the fuel gain an advantage amid rolling blackouts and unreliable transport.
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