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Cubans prepare for 500% fuel price hike amid economic crisis

Jan 14, 2024 | Local News

January 14, 2024

The Cuban government has declared a 500% increase in fuel prices starting from February 1, citing its inability to sustain massive subsidies amid the country’s worst economic crisis since the 1990s. The move is a response to Cuba’s struggling economy, with a fiscal deficit of around 19% and an official inflation rate of 30%. The cost of regular gasoline will rise from 20 cents to $1.10 per liter, while special gasoline will increase from about 25 cents to $1.30. Electricity, natural gas, water, public transit, and gas canister prices will also see hikes. Cuba’s GDP contracted by 1-2% last year, and the nation faces challenges in importing basic goods. The impending price spikes have prompted Cubans to queue up at gas stations to secure lower subsidized prices before the changes take effect. The fuel price increases will significantly impact consumers, with the cost of filling a 40-liter tank reaching around $23, surpassing the average monthly state salary of less than $16. Additionally, the government plans to open 29 fuel stations accepting only dollars, potentially creating privileged access to gasoline for those with access to foreign currency. The move comes after a year marked by power blackouts and fuel shortages, further challenging the Cuban population in 2023.

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