Cuban Leader Calls for Immediate Economic Overhaul as Oil Crisis Deepens

Cuban President Miguel Díaz-Canel announced Monday that his administration must immediately implement major economic and social reforms as the island nation faces dwindling oil supplies. The push for change comes amid ongoing fuel shortages, power outages, and increased U.S. sanctions that have cost Cuba billions in revenue.

HAVANA — During a Monday session with his Council of Ministers, Cuban President Miguel Díaz-Canel announced that his administration must take immediate action to overhaul the nation’s economic and social framework as oil supplies continue to diminish across the Caribbean island.

Díaz-Canel’s announcement comes as Cuba grapples with mounting pressure from a recent oil embargo and suspended petroleum deliveries from Venezuela following U.S. actions against the South American nation in January.

“We must focus, immediately, on implementing the urgent, most necessary transformations that must be made to the economic and social model,” Díaz-Canel stated, according to reports from state-controlled media outlets.

According to government media sources, the president outlined that Cuba’s economic and social restructuring efforts would involve expanding business and local government independence, along with downsizing state bureaucracy and governmental institutions.

Díaz-Canel urged local governments to take charge of various initiatives, including attracting foreign investment, creating partnerships between government and private enterprises, and developing investment opportunities with Cuban expatriates, state media reported.

Prime Minister Manuel Marrero Cruz emphasized that the nation’s immediate priorities center on boosting food production and overhauling the electrical infrastructure as the country continues to experience widespread blackouts and fuel shortages.

Energy and Mines Minister Vicente de la O Levy told state media that local governments are moving too slowly in creating transition plans, despite efforts to distribute solar panels to medical professionals, educators, and students. He stressed that municipalities must develop self-reliant sustainability plans using local resources.

In recent weeks, Cuba has enacted strict fuel conservation policies, including suspending certain public transit services and shifting educational instruction to online platforms.

While the U.S. Treasury Department provided some relief last week by relaxing certain restrictions on Venezuelan oil sales to Cuba, experts predict the island’s energy and economic challenges will continue.

Beyond energy concerns, Cuba faces mounting difficulties from intensified U.S. sanctions, which government data shows have eliminated approximately $8 billion in revenue between March 2024 and February 2025 — representing a nearly 50% increase in losses compared to the previous year.