DIGIVESTASI - Cuba's 500% fuel price hike will take effect this week, a month later than originally planned. As reported by AFP on Thursday (February 29, 2024), Finance Minister Vladimir Regueiro announced through his government spokesperson that the price increase will take effect on Friday, March 1, 2024. 

Starting the same day, electricity prices for the largest consumers in the country will rise by 25%. Havana has announced a five-fold increase in fuel prices starting February 1, as part of a series of measures aimed at reducing the communist-ruled country's budget deficit. 

However, the increase was postponed following a "cybersecurity incident" last month. Days later, Economy Minister Alejandro Gil was fired. The price of regular gasoline will increase from 25 pesos ($7) per liter to 132 pesos ($37) per liter, and the price of premium gasoline will increase from 30 pesos ($8,300) per liter to 156 pesos ($43,600) per liter.

However, public transit fares remain unchanged and natural gas price increases are still pending. Authorities are also asking travelers to pay for fuel in foreign currency. The country of 11 million people is experiencing the worst economic crisis since the collapse of the Soviet bloc in the 1990s due to the coronavirus disease (Covid-19) pandemic, the recent tightening of US sanctions, and structural weaknesses in the economy.

According to official estimates, the Cuban economy is expected to contract by 2% by 2023 and inflation will reach 30%. Independent experts say these figures may be too low. Fuel and other necessities are in short supply, and the government subsidizes almost every good and service that Cubans consume.

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