Cuba’s capital began restricting fuel sales on Tuesday, threatening to further weaken an already economy
(Bloomberg) — Cuba’s capital began restricting fuel sales on Tuesday, threatening to further weaken an economy reeling from power blackouts, rampant inflation and the worst sugar harvest in more than a century.
In a Facebook post, the government of Havana said it would limit the sale of diesel to 100 liters (26 gallons) per vehicle and gasoline to 40 liters (11 gallons) per vehicle.
Russian Foreign Minister Sergei Lavrov is expected to make an official visit to the island this week, after making an initial stop in Brazil. Moscow is a close ally of Cuba’s communist government and is among its largest trade partners.
Cuban President Miguel Diaz-Canel has tried to defray blame for the shortages, which have led to long lines and growing frustration. Last week, he said international suppliers have been falling short because they are “also suffering complex energy situations.”
Although he didn’t mention any specific suppliers, Venezuela is Cuba’s primary fuel provider.
While Cuba consumes between 500 and 600 tons of fuel a day, it has been receiving about 400 tons, Diaz-Canel said.
The shortages are an additional headwind for an economy forecast to grow just 1.5% this year by the Economic Commission for Latin America and the Caribbean, down from 2% in 2022.
Last year’s production of sugar, one of the country’s key crops, plunged according to state newspaper Granma, amid shortages of inputs such as fertilizer.
Read More: Cuba Holds Stacked Election as Rulers Try to Contain Mass Anger
On Wednesday, Cuba’s National Assembly is expected to reelect Diaz-Canel as president.
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