US firm in talks to send largest fuel shipment to Cuba in decades

A Florida-based trading firm, Vanguard Energy, is in advanced negotiations to deliver what could become the largest shipment of US fuel to Cuba since the Eisenhower administration, as the island struggles with a deepening energy crisis.

Vanguard Energy has already been supplying small volumes of petrol and diesel to Cuba. The company is now preparing to significantly scale up deliveries, its president, Matthew Klan, told Bloomberg.

The firm has recently leased storage tanks on the island as part of plans to export a total of 250,000 barrels of fuel, including 100,000 barrels of petrol and 150,000 barrels of diesel. Klann said in an interview that the fuel is intended exclusively for the private sector, rather than state entities.

If completed, the shipment would mark the largest US fuel delivery to Cuba since Washington curtailed most trade with the island in 1960 following the Fidel Castro government’s nationalisation of American oil refining assets.

Based on US government estimates, the petrol component alone would be sufficient to meet nearly 11 days of typical demand.

The planned delivery comes against the backdrop of a worsening energy crisis. Following the US capture of Venezuela’s leader in January, American fuel supplies to Cuba have been limited to humanitarian purposes and private-sector use, including approximately 9,200 small businesses.

Klann said he has already secured approval from Cuban authorities for the shipment. However, the US Treasury and State departments did not immediately respond to requests for comment, and neither the Cuban embassy in Washington nor Cuba’s Foreign Ministry provided an immediate reply.

Vanguard’s earlier deliveries were enabled after the US Commerce Department eased restrictions in February, allowing the sale of American fuel to private Cuban companies.

Although Cuba’s economy has been under strain for years, conditions deteriorated sharply in 2025 after Washington imposed a de facto oil blockade on Venezuela, previously the island’s primary energy supplier. The pressure intensified further in early 2026 following the removal of Venezuelan leader Nicolas Maduro. Efforts by Russia to supply fuel to Cuba have largely failed to provide sustained relief.

Vanguard has provisionally secured a US-flagged tanker to transport the fuel, which will be sourced from a refinery in Texas. The company has also signed a five-year lease agreement with a Cuban government-linked entity to use storage facilities on the island, facilitating distribution, Klann said.

While negotiations are at an advanced stage, final details of the deal are still being worked out.

The administration of Donald Trump has sought to drive political and economic change in Cuba through sanctions, including restricting access to energy supplies and threatening tariffs on countries that export crude to the island.

The resulting shortages have had severe consequences. With limited fuel available for electricity generation and refining, Cuba has experienced widespread blackouts, triggering unrest and sporadic protests.

As supplies dwindled, the Cuban government moved to ease restrictions. In February, President Miguel Diaz-Canel authorised private enterprises to import fuel, a role previously reserved for the state.

Until recently, most fuel shipments to the private sector arrived in ISO tanks — large container-mounted cylinders — each holding no more than 150 barrels. This method is significantly more expensive and less efficient than bulk tanker shipments, which can carry up to 250,000 barrels per voyage.

By Tamilla Hasanova