Cuba’s Deepening Economic Crisis: Fuel Shortages & Growing Inequality

A quiet applause rises from a park near the Los Pinos gas station in Matanzas, 100 km east of Havana, as the lights finally come on. The station had been without electricity for a full day, and the first of around 100 cars had arrived hours earlier. Drivers observed an informal queuing system, memorizing the cars in front and behind them, unwilling to leave the vicinity due to the value of securing fuel.

Growing Divisions in Cuba

Los Pinos is one of 30 state-run gas stations on the island that operate when electricity is available. The situation exemplifies deepening divisions within Cuba, stemming from a strengthening U.S. Oil embargo and a retrenchment of the state. These divisions exist between foreigners and locals, rural and urban areas, those receiving remittances and those who do not, and between newer private business operators and state employees.

Did You Recognize? The first of approximately 100 cars arrived hours before the lights came on at the Los Pinos gas station.

Currently, only rental cars can use the gas station network, limited to 20 liters (5.3 US gallons) per visit. Payments must be made in dollars at a rate of $1.10 per liter, using foreign credit cards or Cuban prepaid cards. While residents can attempt to reserve fuel through an official app, it is described as a lottery with long waits.

Even if accessible, the prices at Los Pinos are prohibitive for many Cubans. The average state employee salary is reportedly 6,500 pesos per month, equivalent to roughly $15 USD at the unofficial exchange rate. At the end of last month, gasoline on the black market rose from 2,000 pesos per liter to as high as 6,000 pesos in some locations. Some drivers were reportedly renting cars for $100 a day, filling up twice, and reselling gasoline in other provinces, a practice the government has since curtailed, limiting rentals to non-residents.

Power Outages and Basic Necessities

Prolonged and unpredictable power outages are increasing, particularly in central and eastern Cuba. Access to electricity varies greatly between urban and rural areas, and even within cities, with those near hospitals, military bases, or water pumping stations receiving preferential treatment. Many are now cooking with charcoal, and a trade in improvised iron stoves has emerged. In eastern Cuba, sacks of charcoal are exchanged for 1,300 pesos.

Reliance on the state ration card is diminishing. Meat and fish rations disappeared in 2023, and current rations are limited to two pounds of rice, one pound of sugar, a small bread roll, and four packages of filterless cigarettes, often resold on the black market. Subsidized cooking oil is now primarily available through government-authorized private businesses, costing up to $5 per liter in remote eastern areas—equivalent to the price of contraband gasoline.

Expert Insight: The described situation highlights a growing disparity in access to basic resources within Cuba, with economic opportunities increasingly concentrated among those receiving remittances or participating in the private sector. This could lead to further social stratification and instability.

Begging has develop into common, and homelessness, previously rare, is now a visible issue. Uncollected garbage accumulates, and public transportation has been drastically reduced or eliminated. Some Cubans who remember the “special period” following the collapse of the Soviet Union say the current situation is worse.

Economic Shifts and Regional Disparities

Despite these hardships, some Cubans can afford oil and charcoal due to remittances from abroad. Those involved in regulated private businesses also have access to the dollarized economy. Most imports now pass through a free trade zone in Mariel, a western port distant from much of the country, increasing transportation costs. The government recently announced that private companies will be allowed to import fuel, but only if it does not end up in state hands, potentially leading to the creation of shell companies and further chaos.

The contradictions and inequalities are particularly evident in Guantánamo, where state salaries are below the national average and opportunities in private enterprise are limited. Despite this, the area is agriculturally rich and benefits from remittances due to emigration. While some areas have reliable electricity, others, like the San Justo neighborhood, lack basic services.

Frequently Asked Questions

What is happening with gasoline access in Cuba?

Access to gasoline is limited, with state-run gas stations like Los Pinos prioritizing rental cars and requiring payment in dollars with foreign credit cards. Prices are high, and availability is inconsistent.

What is the state of electricity in Cuba?

Power outages are becoming more frequent and unpredictable, especially in central and eastern Cuba, with significant variations in access between urban and rural areas.

What is the situation with food rations in Cuba?

The state ration card is no longer reliable, with meat and fish rations discontinued in 2023. Available rations are limited to basic staples like rice, sugar, bread, and cigarettes.

How might these economic challenges impact the daily lives of ordinary Cubans in the coming months?

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