Facing severe shortages and economic turmoil, the Cuban government has declared a substantial rise in fuel prices, intending to address its deficit.
Effective February, petrol prices will surge from 25 pesos to 132 pesos per litre—a five-fold increase.
Finance Minister Vladimir Regueiro revealed similar hikes in diesel and other gasoline types, along with a 25% electricity price surge for major residential consumers and increased costs for natural gas.
To augment foreign currency reserves for fuel purchases, the government plans to open 29 new petrol stations accepting only US dollars.
“These measures aim to revive our economy,” stated Regueiro during a televised announcement, emphasizing the need for economic recovery.
Cuba’s economic challenges stem from the pandemic, intensified US sanctions, and internal structural weaknesses.
Despite Cuba’s historically low fuel prices globally, economists highlight the relative expense for citizens based on local income levels.
Professor Omar Everleny Pérez noted that while Cuban petrol might be inexpensive on a global scale, it’s considerably costly concerning local wages.
This sharp price escalation is anticipated to impact society at large, exacerbating difficulties in a nation with limited car ownership prospects due to financial constraints.
Cuba’s heavy reliance on imports has led to acute shortages of essential commodities like food, medicine, and consumer goods for the past four years, further straining the populace.
Source-BBC
