Cuba Shifts to Market-Based Fuel Pricing Amid Energy Shortages

(MENAFN) The Cuban government has announced a major change in its fuel policy, moving away from a fixed-price system and allowing fuel prices to fluctuate based on import and operational costs, according to official statements cited in reports.

The Finance and Prices Ministry said that beginning May 15, fuel sold in foreign currency will be priced either higher or lower depending on the actual cost of each transaction. This marks a departure from the previous system in which the state maintained stable fuel prices to shield consumers from global market volatility.

Authorities stated that the fixed pricing model has become economically unsustainable under current conditions, pointing to external pressures and constraints on energy imports.

Under the new framework, fuel prices at service stations will vary and reflect a range of factors, including supplier pricing, transportation costs, shipping routes, insurance expenses, risk premiums, and fluctuations in global energy markets.

Officials also linked the country’s energy difficulties to restrictions affecting oil supplies, saying external economic measures have significantly reduced access to imported fuel and worsened shortages on the island.

According to reports, policy changes introduced through executive actions by US President Donald Trump earlier in January and May have further constrained Cuba’s access to oil, deepening pressure on its energy system and daily living conditions.

Current data on Cuba’s national electricity system shows available generation at around 1,250 megawatts, while demand stands at approximately 2,884 megawatts, leaving a significant shortfall affecting supply stability.

Officials emphasized that Cuba maintains its right to import fuel freely to support economic development and ensure public welfare, describing it as essential for national stability.

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