The Cuban government has introduced new limitations on the sale of premium gasoline, restricting purchases exclusively to payments in U.S. dollars (USD). This decision, announced by the Union Cuba-Petroleum (CUPET), is a response to the shortage of this fuel type on the island and further entrenches the dollarization of Cuba's energy sector.
Starting Wednesday, gas stations with premium gasoline in stock will only accept USD payment cards, effectively excluding drivers without access to this currency. As part of these changes, state sector cards previously designated for premium fuel will be automatically converted for the purchase of regular gasoline after midnight on Wednesday, according to journalist Lázaro Manuel Alonso via social media.
The Dollarization of Fuel in Cuba
This restriction is part of a broader trend by the Cuban regime to tie essential goods to foreign currency payments. In recent months, Cuban authorities have increased the number of gas stations that operate exclusively in dollars. In January 2024, nearly 30 service stations switched to selling fuel only in USD, with an additional 17 stations adopting the same model by May 2024. The regime claims that selling in dollars will ensure fuel supply and reduce the long lines at stations accepting Cuban pesos.
This policy has faced significant backlash for excluding the majority of the population, who earn in national currency and lack direct access to foreign currencies.
Fuel Crisis and Economic Challenges
Cuba's fuel crisis has worsened in recent months, marked by persistent shortages, long queues at gas stations, and sales restrictions. The limitation on premium gasoline sales underscores the perception that the government prioritizes foreign currency collection over equitable resource access.
The increasing use of the dollar in official transactions is part of a broader partial dollarization policy, extending to sectors such as food, appliances, and now fuel. In December 2024, the Cuban regime formalized dollar circulation with a document, solidifying its status as a key currency for many economic activities, while the Cuban peso continues to devalue.
CUPET's measure does not have an expiration date, and the government has not provided alternatives for those without access to foreign currencies, leaving a large portion of the population without access to premium gasoline.
Understanding the Impact of Cuba's Fuel Dollarization
Why is Cuba selling premium gasoline only in USD?
The Cuban government claims that selling premium gasoline in U.S. dollars helps ensure a steady fuel supply and reduces wait times at gas stations that previously accepted Cuban pesos.
How does this policy affect Cuban citizens?
The policy excludes many Cubans who earn in the national currency and do not have direct access to U.S. dollars, limiting their ability to purchase premium gasoline.
What are the broader implications of dollarization in Cuba?
The trend towards dollarization in Cuba affects several sectors, including food and appliances, and reflects a broader economic policy as the Cuban peso continues to lose value.