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U.S. fuel exports to private businesses stoke Cuba energy black market
Reuters reports the Commerce Department exception has enabled first major landings of U.S. gasoline and diesel since the 1959 nationalizations, but some fuel is reportedly resold through informal channels as state supply strains continue.
Cuba’s cautious opening of its energy sector to private investment has been accompanied by a chaotic black market for U.S.-supplied fuel, according to Reuters, following decades of state control after the 1959 revolution.
Reuters reports gasoline is being sold at high prices, with diesel promoted through social media, as U.S. restrictions on Cuba remain in place but a Commerce Department exception allows U.S. companies to export fuel to private Cuban businesses.
The article says oil shipments from Cuba’s traditional suppliers Venezuela and Mexico ended abruptly after the U.S. ousted Venezuela’s Nicolas Maduro in January, while sanctions and threats have deterred tankers from setting sail and U.S. Coast Guard cutters patrol nearby waters.
While Reuters adds that the new flow of gasoline and diesel provides some relief for private restaurants, retailers and taxis, the fuel is also reportedly resold on the black market, blunting the impact of public transport problems, rolling blackouts, and water distribution failures, even as disparities widen.
Latest closeGasoline (RBOB) $2.868 ▼3.9%