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Cuba’s President Miguel Díaz-Canel told the government to concentrate immediately on urgent changes to the island’s economic and social model, as the country grapples with a petroleum squeeze that has fed shortages and power problems.

Speaking during a meeting of the Council of Ministers, Díaz-Canel linked the effort to the need to address scarcity conditions affecting Cuba and to accelerate reforms tied to how the state runs the economy and society. State media reported that he said the government should focus “de inmediato” on “implementing the urgent transformations” needed for the “economic and social model,” while the island continues to feel the pressure of U.S. actions affecting oil supplies.

The comments arrived as Cuba resents what the report described as a recent U.S. “oil blockade” and the suspension of crude shipments from Venezuela after the U.S. attacked the South American country in January. In that context, Díaz-Canel and Cuban state outlets said the drive to overhaul the model is also connected to changes such as expanding autonomy for enterprises and municipalities and resizing the state apparatus, along with the government and institutions.

Díaz-Canel also urged municipalities to take on additional tasks, including managing areas such as direct foreign investment, pursuing economic alliances between state and non-state sectors, and pursuing investments backed by Cuban residents living abroad. The reported emphasis suggested a government push to shift more operational responsibilities toward local authorities while reforming the broader framework for investment and state-to-non-state coordination.

Prime Minister Manuel Marrero Cruz, in the same government meeting, pointed to priorities that he said remain centered on producing food and changing the island’s electrical network. State media reported that he said serious power outages and fuel-supply interruptions continue, even as officials have begun other measures intended to stretch limited energy resources.

The report also cited the energy minister, Vicente de la O Levy, who said that municipal progress toward developing a transition strategy remained slow. He said municipalities need a sustainability strategy supported by their own resources, despite state media reporting that Cuba has distributed solar panels to groups that include doctors, teachers and children.

Cuba has already implemented some fuel-saving measures, including suspending part of public transportation and moving classes to online instruction, the report said last month. It comes as the U.S. Treasury indicated last week it would slightly loosen restrictions on the sale of Venezuelan oil to Cuba, though the report said a broader energy and economic crisis for the island is expected to persist.

Beyond energy access, Díaz-Canel’s remarks landed amid a backdrop of stepped-up U.S. sanctions that, according to the report, have deprived Cuba of nearly $8 billion in revenue between March 2024 and February 2025. The report said the loss is almost 50% greater than in the prior period, underscoring the fiscal strain officials say has accompanied the island’s energy difficulties.