Cuba opens fuel retail to private firms amid crisis

De-facto US fuel embargo that has left gas stations across Havana empty and disrupted daily transport for six months.

Cuba's government has lifted restrictions on petrol distribution, allowing private companies to sell fuel for the first time as the country grapples with a severe energy shortage. The move, announced through a lengthy state decree on July 29, comes amid a de-facto US fuel embargo that has left gas stations across Havana empty and disrupted daily transport for six months, France24 reports.

Prime Minister Manuel Marrero told the National Assembly that authorizations had already been granted to more than 100 non-state operators for wholesale fuel commercialization, and that the first foreign investment project for fuel import, distribution, and sale had been approved.

"The results will be achieved gradually," said Marrero, backing the reforms with the slogan "change is possible."

Private firms will also be permitted to import and construct vehicles, alongside new openings in electricity generation, waste collection, and pharmaceutical sales. The reforms follow a package of 176 market-opening measures approved by parliament in June, of which 110 are already being implemented, with the rest due by September.

Economist Daniel Torralbas noted that Cuban small and medium enterprises currently lack the financial capacity to invest in fuel infrastructure, meaning foreign capital will likely be essential to any expansion of private fuel retail on the island.