1Berita English – The Cuban government is set to increase the prices of fuel by up to 500 percent starting from February 1, 2024. The government also plans to raise electricity tariffs by up to 25 percent for large residential consumers, as well as the price of natural gas. These hikes are a response to the economic crisis plaguing the country.

If implemented, regular fuel prices in the country will surge from 25 pesos to 135 pesos or approximately $37.33. Meanwhile, premium fuel is expected to increase from 30 pesos to 156 pesos or around $43.16.

The government states that these measures are taken to reduce the budget deficit. Cuban Transport Minister Eduardo Rodriguez mentioned that despite the fuel price increase, state-owned companies and private operators will be able to purchase fuel at a wholesale price that only rises by 50 percent.

As reported by AFP, he added that most public transportation fares will remain unchanged. Alongside the fuel price hikes, he also announced a sharp increase in domestic flight tickets and inter-provincial bus fares.

Cuba, with a population of 11 million, is currently facing its worst economic crisis since the collapse of the Soviet bloc in the 1990s. This crisis is a consequence of the COVID-19 pandemic, tightening U.S. sanctions in recent years, and structural weaknesses in the economy.

Official estimates suggest that Cuba’s economy contracted by 2 percent in 2023, with inflation reaching 30 percent during the same period.

Independent experts argue that these figures are conservative, and the crisis has made it increasingly difficult to access fuel and other essential commodities. The Cuban government, which subsidizes nearly all essential goods and services, has hinted that it must raise fuel prices to weather the crisis.

“The country cannot maintain fuel prices, which are the cheapest in the world,” said Cuban Economy Minister Alejandro Gil.