Shocking price increase in Cuba: fuel prices to increase by more than 400%

The Cuban government caught the population by surprise this Wednesday by announcing that starting this Friday, there will be a massive increase in fuel prices, exceeding 400%. This measure, originally scheduled to take effect on February 1 but postponed after a cyberattack, is part of a broader adjustment plan aimed at reviving the national economy and reducing the high public deficit. The price hike will affect regular gasoline, which will increase from the current 25 pesos (CUP) to 132 pesos, meaning Cubans will have to pay around 5,280 CUP (44 dollars) to fill a 40-liter tank. This measure will have a significant inflationary impact as fuel prices influence the entire economy of the country. In addition to the fuel price increases, it is also expected that water and electricity rates will go up starting this Friday. However, the increase in interprovincial transportation, which could reach 600%, has been postponed for now, as well as the increase in liquefied gas prices. Finance and Prices Minister Vladimir Regueiro Ale stated that the government is aware of the impact these measures will have on the population and has taken steps to mitigate the inflationary impact. However, there have been no public details on how support will be provided to the most vulnerable population groups facing these economic adjustments. Cuba closed the year 2023 with a contraction in its GDP and a public deficit of 18.5%, reflecting the chronic economic difficulties the country faces. This situation has been exacerbated by the pandemic, US sanctions, and decisions in national macroeconomic policy. The adjustment plan implemented by the Cuban government has sparked controversy among the population, already affected by a challenging economic situation. It is expected that these measures will help correct distortions and revive the country's economy, but they also pose significant challenges for many Cubans struggling to cope with the current crisis.