Cubans are facing a new challenge as the government announces a five-fold increase in fuel prices, with the surge set to take effect from February 1. The cost of a liter of regular gasoline is set to rise from 25 pesos to 132 pesos, while premium gasoline will increase from 30 to 156 pesos. The move is part of the government’s efforts to reduce its budget deficit.
Cuba is grappling with its worst economic crisis since the 1990s, driven by the COVID-19 pandemic, tightening US sanctions, and structural weaknesses in the economy. The country’s economy shrank by an estimated two percent in 2023, with inflation reaching 30 percent.
The price hike in fuel and other essentials is expected to exacerbate the challenges faced by the Cuban population. The government also confirmed a 25-percent rise in electricity prices for major residential consumers and an increase in the price of natural gas. Many Cubans fear further inflation and economic difficulties as a result of these measures. The average Cuban salary is around $40 per month.
