politics
US Oil Blockade on Cuba Hits Private Sector Businesses
The United States imposed an oil blockade on Cuba in late January 2026. Private businesses in Havana report sharp increases in fuel costs, longer power outages and reduced profitability. The Cuban government has responded with new regulations to expand opportunities for the private sector.
May 9, 9:18 AM·3m read1 source
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The United States imposed an oil blockade on Cuba in late January. Since then, power outages have lengthened and fuel shortages have intensified across the island. Havana business owners say the measures have sharply raised operating costs for small private firms.
Miguel Salva, 46, owner of Oishi food booth in Havana’s Pabellon Cuba exhibition venue, said the fuel crisis has been a nightmare. His former restaurant in the Regla municipality had relied on a backup generator. Petrol prices rose from about $1 a litre earlier this year to $10 on the black market after the government cancelled diesel sales in February and began rationing petrol.
“I had to close the restaurant,” Salva said. ” Across from Oishi’s booth, Pincharte operates as an itinerant food vendor hauling ovens and freezers in diesel trucks between fairs. Co-owner Elianis Aguero, 31, said expenses have increased eightfold. “Right now, no business is profitable if you depend on fuel,” Aguero stated.
Both businesses plan to shift toward renewable energy this year by purchasing solar panels and electric vehicles. Demand for electric tricycles has pushed their price up by 50 percent.
Eric Almeida, 41, president of Quota consulting company, said the oil blockade affects Cuba’s entire private sector, including logistics, marketing, exports, imports and productive capacity. The cost to truck a container from the port to Havana has risen from $100-$150 to at least $600.
That increase raises final prices for customers and slows commercial processes. Quota has lost clients who cut non-essential spending or closed operations. Almeida said the company has reorganised to survive. He estimates net income this year will fall 50 to 60 percent from pre-crisis forecasts.
