Cubas Economy Faces Growing Challenges Due to Fuel Shortages and Rising Hardship

Havana Experiences Economic Impact from US Fuel Blockade

A recent executive order by US President Donald Trump has led to significant changes in Havana’s streets. The order restricts oil supplies to Cuba, affecting the movement of vehicles and people, as well as businesses.

Airbnb has deactivated listings for Cuban hosts with US bank accounts linked to their listings, resulting in cancellations of reservations from January to April. Two bed-and-breakfast owners, Sandra and Sabrina Gonzalez, have been impacted by this decision. The sisters had relied on Airbnb for their business since 2016, but the restrictions have disrupted their operations.

Cuban authorities announced that the island’s jet fuel supplies had run dry on February 8. Canadian carriers suspended flights to Cuba, and Russia’s Rossiya and Nordwind followed suit. This led to a surge in cancellations of bookings at hostels, bed-and-breakfasts, and state-run hotels.

The US fuel blockade has also affected Sandra and Sabrina’s work as video producers. Shoots were cancelled due to the restrictions, leaving them without income. The sisters are now considering alternative career paths.

In response to the oil blockade, the Cuban government has implemented a nationwide contingency plan. This includes decentralising fuel imports and authorizing private companies to buy fuel abroad. However, this has led to increased prices for petrol on the black market, with prices reaching $8 per liter (about $30 per gallon).

The US fuel blockade has also had an impact on Cuba’s economy. Many state-sector employees have been reassigned or sent home, and non-essential surgeries have been suspended. College students have also been sent home.

Economists predict that sectors directly reliant on fuel, such as transportation and industry, will be hit hardest by the oil blockade.

Source: Al Jazeera