US Ships Fuel to Cuban Private Businesses Despite Government Blockade

American companies have delivered about 30,000 barrels of fuel to Cuba's private sector this year while maintaining a blockade against the Cuban government. The Trump administration strategy aims to support private Cuban businesses over state-run enterprises.

American fuel suppliers have delivered roughly 30,000 barrels of petroleum products to Cuban private businesses so far this year, according to shipping records and documents reviewed by Reuters. The deliveries represent a Trump administration strategy to support private enterprise while pressuring Cuba’s government.

The United States has maintained an effective fuel embargo against Cuba since January, attempting to cut off oil supplies and force government concessions from the longtime adversary.

However, Washington has carved out an exemption for Cuba’s small but important private business sector.

Secretary of State Marco Rubio explained that permitting these fuel shipments aligns with the Trump administration’s broader policy “entirely designed to put the private sector and individual private Cubans – not affiliated with the government, not affiliated with the military – in a privileged position.”

The fuel quantities imported by private companies since early February – totaling about 30,000 barrels or roughly 1.27 million gallons – represents just a small fraction of Cuba’s energy requirements. The island nation previously needed approximately 100,000 barrels daily to power electrical plants and meet transportation fuel demands.

However, shipping documentation indicates Rubio’s strategy is gaining momentum, with import volumes increasing each week.

Following Washington’s capture of Venezuelan leader Nicolas Maduro in January, the U.S. has prevented Venezuelan oil deliveries to Cuba’s government while threatening sanctions against other nations supplying fuel to the island.

Cuban President Miguel Diaz-Canel announced last week that the country had received no fuel shipments for three months, though he didn’t mention private sector imports.

Container vessels carrying diverse goods for private importers, including fuel, have made 61 trips to Cuba in 2026, frequently traveling between Cuban ports and destinations in the United States, Europe, and Caribbean islands.

The majority of these ships have unloaded cargo at Mariel port near Havana, with two additional vessels en route from Spain and Jamaica expected by month’s end. This represents a slight decrease from 75 container ships during the same timeframe last year, based on LSEG vessel tracking information analyzed by Reuters.

Data shows some Cuba-bound ships originated from major energy centers where coal, crude oil, and refined products are loaded, though most arriving vessels are classified as multi-purpose carriers transporting various goods.

Shipments from the U.S. Gulf Coast, particularly Louisiana’s Southwest Pass energy corridor, are increasing, though most American container ships to Cuba this year departed from Florida ports.

These new fuel flows have enabled some businesses to maintain operations despite the severe blockade affecting public transit, power generation, and tourism industries.

Three Cuban business owners told Reuters that fuel has started reaching private companies initially shut down by the embargo since early February when exports commenced.

Companies importing fuel include private bakeries, distributors serving small urban markets, and larger online retailers like Supermarket23, according to sources and reviewed documents.

Supermarket23 informed customers in February it was suspending orders due to fuel shortages. After importing fuel, the company resumed delivery operations, according to a source familiar with its activities.

The company didn’t respond to Reuters’ comment request.

The U.S. Bureau of Industry and Security issued February guidance authorizing exports of American gasoline and petroleum products to qualified Cuban private sector entities.

Cuba’s government announced it would permit private micro, small, and medium enterprises (MIPYMES) to import fuel for addressing the energy shortage.

Private companies are enforcing strict oversight to ensure compliance with U.S. program requirements, all three business sources confirmed.

Commercial resale is prohibited – fuel must be used exclusively by importing companies, another source noted.

Cuban officials have established safety regulations governing private sector fuel storage and distribution, a government source told Reuters.

Imported fuel arrives mainly in ISO tanks designed to safely hold and transport approximately 21,600 liters aboard container ships, according to reviewed documentation.

About 200 ISO tanks have been unloaded in Cuba, with diesel comprising the vast majority of imports and only 1% containing gasoline. Most shipments originated from the United States, shipping data confirms.

Gasoline’s higher flammability compared to diesel requires greater storage and handling precautions, limiting its practicality on an island with limited modern infrastructure.

Some businesses have positioned large white diesel ISO tanks next to existing facilities, while others have arranged to lease unused island infrastructure for storing larger fuel quantities while strictly limiting distribution to private sector companies only.

U.S. fuel exports to Cuban private firms come with explicit warnings.

“If we catch the private sector there playing games and diverting it to the regime or to the military company, if we find that they’re moving that stuff around in ways that violate the spirit and the scope of these permissions, those licenses will be canceled,” Rubio warned in February.