By Micah Jonah, March 6, 2026
Cuba is facing mounting economic pressure as a worsening fuel shortage disrupts transportation, businesses, daily life across the island.
The situation follows new restrictions linked to actions by the United States government under President Donald Trump, including measures targeting countries that supply oil to the Caribbean nation.
In the capital city, Havana, residents say the fuel crisis has significantly reduced the movement of vehicles, affecting commercial activities and public transport.
Sandra Gonzalez and her twin sister Sabrina, both 26, said their tourism related business suffered a major setback after their property listings on Airbnb were suddenly deactivated due to new United States regulatory requirements affecting Cuban hosts linked to American financial systems.
The sisters, who have operated bed and breakfast apartments since the tourism boom that followed the diplomatic thaw between Cuba and the United States during the administration of Barack Obama, said the cancellations wiped out reservations scheduled between January and April.
The Cuban government later announced that jet fuel supplies had been exhausted, forcing several international airlines to suspend flights to the island. Among the affected carriers were Air Canada, Air Transat and WestJet.
Authorities responded by introducing emergency fuel restrictions, limiting sales in foreign currency to 20 litres per vehicle while suspending sales in local currency. The measures have created long queues and pushed petrol prices sharply higher on the black market.
Petrol prices have reportedly risen to about eight dollars per litre, representing a sharp increase compared with previous weeks.
The crisis has also forced the government led by President Miguel Díaz-Canel to implement a nationwide contingency plan that includes remote work for some public sector employees, reduction of the work week to four days and the suspension of some non essential medical procedures.
Transportation has been one of the hardest hit sectors. Many of Havana’s iconic vintage American taxis have disappeared from the streets due to fuel scarcity, leaving electric tricycles and motorcycles to fill the gap.
The shortage is also linked to declining oil shipments from Venezuela, which previously supplied a significant share of Cuba’s fuel under a long standing cooperation arrangement.
Economic analysts say the current situation could mark one of the most difficult periods for Cuba’s economy in recent years, as the country continues to grapple with declining output, power outages and rising costs of living.
Experts warn that without structural economic reforms and improved access to fuel supplies and foreign currency, the island may struggle to stabilise its economy in the coming months.
