Cuba runs short on fuel at pump as energy crisis festers

HAVANA (Reuters) - Cubans still reeling from months of hours-long blackouts now have a new problem on their hands: fuel shortages.

Many gas stations across the island have been shuttered for days as an unusually severe shortfall has left the nation nearly devoid of gasoline and diesel, stranding motorists and sprouting seemingly interminable lines at the pump in Havana.

"We have been waiting for a fuel truck to arrive for three days," said Armando Corrales from the driver's seat of his gray Kia SUV at a gas station in the capital. "People have slept here in line so they don't lose their spot."

The latest crisis comes on the heels of three nationwide blackouts in two months that left millions in the dark for days, prompting the communist-run government to temporarily close schools and non-essential industry.

Cuba has yet to provide an explanation for the most recent shortfall.

Only a comparative trickle of fuel has been served in Havana since Wednesday, according to a government application that records deliveries to individual gas stations.

Officials have previously blamed fuel shortages on the decades-old U.S. trade embargo, which complicates Cuba's financial transactions, making it more difficult for the government to purchase fuel on the spot market.

Cuba's long-time allies have reduced fuel shipments this year. Venezuela has sent 44% less crude and fuel to the Caribbean island during the January to November period, according to tanker monitoring data and documents from Venezuela's state company PDVSA.

Mexico, which has become a regular supplier to the island, has made up for some of the difference. But both Venezuela and Mexico send mostly crude to Cuba, whose obsolete refineries must use it to make gasoline and diesel for cars, trucks and generators.

Cuba this year began selling fuel in dollars at non-subsidized prices on par with regional neighbors. The government said this was necessary, in part, to raise enough foreign currency to ensure a steady supply at the pump.



Even those far pricier "dollar gas stations" faltered this week, said Jorge Figueredo as he waited to pump fuel in the Havana suburb of Miramar.

"The lines are now miles long even when you go to buy fuel in dollars," Figueredo said.

Source: Investing.com