Joaquín Alonso Vázquez, the Cuban Minister of Economy and Planning, stated on Thursday that the sale of gasoline in US dollars is a "temporary and exceptional measure" aimed at restructuring fuel distribution due to depleted inventory levels. During a working session at the Palace of the Revolution, led by Prime Minister Manuel Marrero Cruz, the Economy Minister clarified that this decision was prearranged with provincial governments and state entities involved in fuel distribution.
"First and foremost, this is an exceptional and temporary measure, previously coordinated with all provinces and local governments, to reorganize service stations where regular fuels will be dispensed, and state entities and prioritized organizations will be served. Everything is set and adjusted," asserted the successor of the ousted Alejandro Gil Fernández. His words, broadcasted by the National Television News (NTV), echo with millions of Cubans who have repeatedly heard the regime describe countless decisions as "exceptional and temporary," such as the MLC stores, food ration reductions, the "temporary suspension" of cash deposits in US dollars, or the recently announced “partial dollarization of the economy,” which seems increasingly comprehensive.
The minister also highlighted that the information has been communicated to state companies to ensure they are aware of the applied procedures and to enhance control measures at service stations. In this context, he stressed the importance of accounting control and internal management adjustments for the cards used to purchase fuel.
Official Rationale and Limitations
According to executives from the CIMEX Corporation and the Cuba-Petroleum Union (CUPET), domestic production of special gasoline will ensure supply at the service stations designated for dollar sales. However, since the announcement, it has become evident that availability remains scarce, directly affecting the mobility of certain sectors.
The government insists that this measure aims to optimize resource utilization and that the policy will be reassessed once fuel supply stabilizes. Meanwhile, the sale of special gasoline in dollars will persist at designated service stations, under continuous monitoring of its impact on the national economy.
External Factors and CUPET's Stance
CUPET has blamed former US President Donald Trump for the fuel crisis in Cuba, citing the tightening of the embargo and the pursuit of entities trading hydrocarbons with the island, restricting access to supply sources. Recently, CUPET highlighted that surveillance on vessels transporting fuel has reached unprecedented levels, severely limiting the country's ability to acquire oil and its derivatives.
This narrative contrasts with the recent arrival of the Russian tanker Akademik Gubkin at Nipe Bay, carrying approximately 790,000 barrels of oil valued at $55 million. The regime's explanations falter under the weight of evidence, exposing the government's inability to resolve the energy crisis. The shift in US foreign policy under the Trump administration and its rapprochement with Moscow further challenges the regime's narrative to justify its failures.
The Dollarization Context in Cuba
The sale of gasoline in US dollars is part of the broader partial dollarization process that Cuba's economy has undergone in recent years. With the shortage of foreign currency and fuel deficit, dollarization of certain products and services has become a strategy to capture foreign currency. However, this phenomenon has exacerbated inequality, as only those with access to freely convertible currency can obtain certain essential goods and services.
In recent months, various measures have reinforced the presence of the dollar in the Cuban economy, sparking criticism from experts and discontent among the population. While the government maintains that these measures are necessary to ensure access to imported products and sustain key sectors, the reality for many Cubans is that the growing dollarization excludes them from basic goods like fuel.
Although President Díaz-Canel's administration has indicated it will continue to evaluate the situation and adjust the measure based on the country's fuel availability, uncertainty remains. Private transport operators and citizens are concerned about gasoline access and the impact these decisions could have on Cuba's national economy and daily life.
Understanding Cuba's Fuel Crisis and Dollarization
Why is Cuba selling gasoline in US dollars?
Cuba is selling gasoline in dollars as a temporary measure to reorganize fuel distribution due to low inventory levels. It aims to optimize resource use and capture foreign currency.
What impact does dollarization have on Cuban citizens?
Dollarization in Cuba has increased inequality, as only those with access to freely convertible currency can purchase certain essential goods and services, such as fuel.
How has CUPET explained the fuel shortage?
CUPET attributes the fuel shortage to the US embargo and increased surveillance of ships transporting fuel to Cuba, which limits the country's ability to acquire oil and its derivatives.