Cuba: Government announces increase of more than 500% in fuel prices since February

The price of gasoline in Cuba will see an increase of more than 500% from February 1, the government said on Monday, as part of a battery of measures to try to reduce the large fiscal deficit.

The price of a liter of Gasoline regular will go from 25 Cuban pesos (0.20 cents) to 132 (1.10 dollars), which is equivalent to +528%, announced the Minister of Finance and Prices, Vladimir Regueirobroadcast on state television.

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The official added that the price of special gasoline will increase from 30 (0.25 cents) to 156 Cuban pesos (1.30 dollars), which represents +520%.

Authorities also ordered foreign tourists to pay for fuel in foreign currency.

This rise “Your objective is to buy fuel, to be able to supply us (…) continue buying” It is “achieve stable supply“said the Minister of Energy and Mines, in turn, Vicente de la O Levyalso invited to the television program.

In addition to the increase in fuel prices, an increase in the electricity tariff of 25% was announced from March 1st for the highest consumption sector.

“O electricity tariff Today it is fully subsidized (…) and will continue to be subsidized even with this 25% growth. The objective is to seek savings,” said de la Ó Levy.

There will also be an increase in the bill Liquid gas.

“Cheapest fuel in the world”

The government, which subsidizes almost all basic services and goods consumed by Cubans, outlined in December a set of measures to reverse the economic crisis that the country is facing, due to the effects of the pandemic, the intensification of sanctions imposed by the washington and the internal distortions of its economy.

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According to official estimates, the Cuban economy contracted by up to 2% in 2023, while inflation closed at 30%, lower than the 39% recorded in 2022.

That same month, the government approved an expansion of the 2023 public budget to increase the fiscal deficit by 44%, which is equivalent to around 15% of GDP, according to analysts.

At the end of December the government admitted that it was unsustainable to continue selling fuel at low prices.”subsidized”.

“The country cannot maintain fuel priceswhich is the cheapest in the world when compared to prices in other countries“said the Minister of Economy, Alexandre Gil.

For the economist Omar Everleny Pérez These measures will reach ordinary citizens. “If you compare yourself to the world, which is how they (the government) always want to compare themselves, gasoline is very cheap, but if you compare yourself to the country’s salary that you pay, gasoline is very expensive.”.

“If the car owner transports the population, the fare will increase and this ends up affecting the population.“, he points out.

According to official data, around 600 thousand combustion cars were circulating in 2022 in Cubawhere 11.1 million people live.

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While public transport is increasingly limited due to lack of fuel, tires and spare parts.

Cuba faces a chronic fuel crisis, worsening in April 2023, when Miguel Díaz-Canel He attributed this to non-fulfillment of commitments by countries supplying crude oil to the island because they face “a complex energy situation”.

VenezuelaCuba’s main supplier of crude oil delivers 56,000 barrels per day to the island, while Mexico It is Russia have contributed over the past year to alleviating the island’s serious deficit.

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.