By Akinsuroju Olubunmi
Cuba implements 500% fuel price increase on Friday
Cuba is set to implement a significant fuel price hike, with a staggering 500 percent increase scheduled to take effect this week, as announced by the government through Finance Minister Vladimir Regueiro via Granma, the official government mouthpiece. Initially planned for February 1, the price adjustment was postponed due to a cybersecurity incident.
The price adjustment will see regular gasoline prices rise from 25 pesos to 132 pesos per liter, and premium gasoline prices increase from 30 to 156 pesos. Additionally, the cost of electricity will also see a 25 percent increase for the country’s largest consumers, effective from March 1.
Despite the price hike, the rates for public transportation will remain unchanged, and the increase in natural gas prices has been postponed. Notably, tourists will now be required to pay for fuel in foreign currency.
Cuba’s decision to raise fuel prices comes as the nation grapples with its most severe economic crisis since the collapse of the Soviet bloc in the 1990s. The economic challenges have been exacerbated by the COVID-19 pandemic, tightening US sanctions, and structural weaknesses within the economy. Official estimates indicate a two percent economic contraction in 2023, with inflation reaching 30 percent, although independent experts suggest these figures may underestimate the true extent of the economic turmoil.
Chronic shortages of fuel and other essential goods persist, prompting the government to heavily subsidize most goods and services consumed by the Cuban population.
Cuba, Fuel Price Increase