Cuba's Fuel Crisis Deepens as US Sanctions Hit Tourism Hard

Cuba's Energy Crisis Reaches Critical Point

Cuba is facing its most severe fuel crisis in decades, with the communist government warning international airlines that they will be unable to refuel at Havana's main airport for the coming month. The crisis stems from Washington's decision to cut off oil shipments from Venezuela—Cuba's primary energy supplier—and threaten tariffs on any country providing oil to the island nation.

'Luchtvaartmaatschappijen moeten voor hun terugbrandstof via andere bestemmingen gaan vliegen zoals Panama en de Dominicaanse Republiek,' says Rico Luman, sector economist for Mobility and Transport at ING, highlighting the immediate impact on aviation. According to the Federal Aviation Administration, A-1 jet fuel will be unavailable at José Martí International Airport from Tuesday through March 11.

Tourism Sector Takes Major Hit

Cuba's tourism industry, one of the country's few remaining sources of foreign currency, is suffering devastating consequences. The government has begun closing resorts and consolidating visitors into fewer hotels to conserve energy during the high season. 'The government has implemented a consolidation strategy to concentrate visitors in fewer properties to maximize efficiency,' according to tourism industry reports.

Visitor numbers have plummeted to just 1.8 million international travelers in 2025—the lowest since 2002 and a dramatic decline from the 2018 peak of 4.7 million tourists. Hotel occupancy dropped to just 21.5% in the first half of 2025, with Canada and Russia remaining as primary source markets despite significant declines of 12.4% and 29% respectively.

Venezuelan Oil Cutoff Creates Perfect Storm

The crisis has its roots in Cuba's decades-long energy partnership with Venezuela. For twenty years, Cuba imported an average of 100,000 barrels of oil per day from Venezuela in exchange for sending doctors, teachers, and security personnel. This arrangement has now collapsed following U.S. intervention in Venezuela and threats of import tariffs on countries supplying Cuba.

'It was really forty percent of the total, so that is considerable,' notes economist Rico Luman about the Venezuelan oil supply. With Venezuela's shipments reduced to just 27,000 barrels daily in 2025, Cuba faces a critical energy gap, needing 110,000-120,000 barrels daily while domestic production covers only 40,000 barrels.

Daily Life Grinds to a Halt

The fuel shortage is having cascading effects across Cuban society. Garbage collection has stopped because trucks can't run, ambulances and fire engines sit idle, and power outages lasting up to 20 hours have become commonplace. The government has implemented emergency measures including reducing public transportation, shortening the workweek to Monday through Thursday, and moving some university classes online.

Nearly one in five Cuban residents has fled the island over the past decade due to the worsening economic crisis, and Nicaragua has tightened immigration rules to prevent Cubans from entering without visas.

Geopolitical Tensions Escalate

The crisis occurs amid heightened tensions between Cuba and the United States, which have been hostile since Fidel Castro's 1959 revolution. U.S. Secretary of State Marco Rubio—himself the child of Cuban refugees and seen as the architect of U.S. Venezuela policy—has openly sought regime change in Havana.

While the Cuban government says it's open to dialogue with Washington, it insists its one-party system is not up for discussion. Russia, an old partner, has expressed concern about the situation, with Kremlin spokesman Dmitry Peskov stating that U.S. attempts to 'strangle' Cuba are problematic.

Sources

Al Jazeera: How US blockade is crippling life in Cuba

CiberCuba: Cuba closes hotels due to fuel shortage

EFE: Cuba starts closing hotels and relocating tourists

Miami Herald: Cuba resold Venezuelan oil during crisis