Cuba's CUPET Restores LPG Distribution Amid Fuel Crisis

Union Cuba-Petróleo (CUPET) has initiated the distribution of liquefied petroleum gas (LPG) in Havana and Santiago de Cuba, with plans to expand sales to other regions. This move comes at a critical time as Cuba struggles with a severe fuel crisis.

Cuba's energy needs are substantial, requiring about 125,000 barrels per day (bpd) of fuels, including motor gasoline, diesel, and fuel oil for power generation. However, the country's domestic oil production is only around 40,000 bpd, exacerbating the fuel shortage.

The crisis has led to frequent blackouts and public protests, highlighting the urgent need for reliable energy sources. CUPET's efforts to restore LPG distribution are seen as a vital step toward alleviating some of the immediate energy demands.

In another development, Mexico is set to resume oil shipments to Cuba after a three-month pause. The Vilma oil tanker recently arrived at the Pajaritos terminal in Coatzacoalcos, Mexico, carrying much-needed fuel supplies. PEMEX, Mexico's state oil company, has become the second-largest supplier of crude oil to Cuba since the second quarter of 2023, with an estimated value of 537 million dollars.

Why this matters: Cuba's fuel crisis has significant implications for the country's economy and population, highlighting the need for reliable energy sources. If not addressed, the crisis could lead to further public unrest, economic instability, and humanitarian concerns.

PEMEX sends light crude oil to Cuba through a wholly-owned subsidiary using Cuba's tanker fleet. This partnership has delivered approximately 7,435,000 barrels to Cuba so far during the current Mexican administration's mandate.

Despite these efforts, Cuba's fuel shortage remains acute. The country also relies on Venezuelan oil, which supplied 24,500 bpd in the first four months of this year. However, this is still insufficient to meet the total demand.

CIMEX, another Cuban company, has announced the opening of 17 new service centers that will sell fuel in dollars. This initiative aims to satisfy the high demand for fuel and provide some relief to the ongoing crisis.

As Cuba continues to overcome its energy challenges, the restoration of LPG distribution by CUPET and the resumption of oil shipments from Mexico are critical steps in addressing the immediate needs of the population.

Key Takeaways

• Cuba's fuel crisis worsens, with 125,000 bpd demand vs 40,000 bpd domestic production.
• CUPET resumes LPG distribution in Havana and Santiago de Cuba to alleviate energy demands.
• Mexico resumes oil shipments to Cuba after a 3-month pause, with 537 million dollars in supplies.
• Cuba relies on Venezuelan oil, but still faces an acute fuel shortage.
• CIMEX opens 17 new service centers to sell fuel in dollars, aiming to satisfy high demand.