CUPET Faces Sanctions: Expert Discusses Fuel Impact on Cuba

The recent sanction imposed by the U.S. State Department on CUPET, Cuba's state-run oil company, has caught energy analysts off guard. This was revealed by Jorge Piñón, a researcher at the University of Texas' Institute of Energy, during an interview published on Friday. Piñón noted that many experts previously believed that CUPET was already encompassed by existing sanctions on GAESA or CIMEX. However, the official measure announced on Thursday by Secretary of State Marco Rubio now explicitly designates it as a blocked entity.

"Honestly, it was unexpected because we assumed, perhaps without thorough research, that CUPET was among the Cuban state enterprises already sanctioned by the United States," Piñón remarked.

The expert highlighted the significant implications of sanctioning CUPET: "It's essential to understand that CUPET oversees the entire oil value chain in Cuba, from exploration and crude oil and natural gas production to refining, with its three or four refineries in the country. It manages logistics, distribution plants, tanker trucks, and service stations."

This management also extends to liquefied gas, used by millions of Cubans for cooking: "All liquid petroleum, asphalt, lubricants, and the crucial liquefied gas for cooking fall under CUPET's umbrella."

According to Piñón, the immediate impact of the sanction will be felt at the end of the chain: "The most significant effect will be where recipients of this oil or fuel in Cuba may have used a CUPET asset, such as a gas station or storage tanks for diesel or gasoline. Those actions will now be completely prohibited."

However, the researcher clarified that shipments via isotanques from the U.S. are not automatically blocked. "Isotank shipments from the United States through the port of Mariel to cities like Villa Clara, Sancti Spíritus, Guantánamo, and Santiago remain open," he stated, with a crucial condition: "The Cuban buyer or operator must ensure that the fuel has no physical connection with a CUPET enterprise."

Nonetheless, the door is firmly shut on large volumes transported by maritime tankers. "We shouldn't expect future shipments of large volumes to Cuba by tankers. But I believe isotanks will continue," Piñón noted, because "Cuba's maritime terminals and storage points, be it Mariel, Nuevitas, Matanzas, Cienfuegos, are under CUPET's control."

This restriction directly impacts the agreement that Vanguard Energy had negotiated with CUPET to send over 250,000 barrels of gasoline and diesel to Cuba. This would have been the largest U.S. fuel shipment to the island since the Eisenhower era, valued at $34.3 million, according to economist Pedro Monreal. The State Department had already denied that Vanguard held a Treasury Department license to operate with CUPET facilities.

When questioned whether the regime could circumvent the sanctions by transferring assets to private entities, Piñón was skeptical: "The only possibility I see is the potential sale of a station or gas station to a private entity," though he cautioned that "leasing CUPET assets might be prohibited."

The sanction against CUPET is part of the Trump administration's increasing pressure on the Cuban regime, which previously included sanctioning GAESA on May 7 under the same Executive Order 14404. Cuba is currently facing a severe energy crisis, with generation deficits reaching up to 2,174 MW and daily blackouts lasting 20 to 24 hours as recorded in May 2026.