Cuba's government will raise the cost of fuel by 500% on the 1st of March

Cuba's government will raise the cost of fuel by 500% on the 1st of March.


Finance Minister Vladimir Regueiro announced through the government's official publication Granma that price increases would take effect on Friday, March 1.

He also mentioned that electricity prices would increase by 25 percent for the country's largest consumers starting on the same date.

Previously, Havana had planned a five-fold increase in fuel prices from February 1 as part of efforts to reduce the communist-run nation's budget deficit. However, this increase was postponed following a "cybersecurity incident" last month.

In response to the economic crisis, the government announced that the cost of regular gasoline would rise from 25 pesos (20 US cents) to 132 pesos per liter, and premium gasoline would increase from 30 to 156 pesos. Despite these changes, prices for the public transport sector will remain unchanged, and the planned increase in natural gas prices has been postponed.

Additionally, authorities have mandated that tourists pay for fuel in foreign currency.

Cuba, with a population of 11 million, is currently facing its most severe economic crisis since the collapse of the Soviet bloc in the 1990s. This crisis is attributed to the effects of the coronavirus pandemic, the escalation of US sanctions in recent years, and underlying weaknesses in the economy.

Official estimates indicate that the Cuban economy contracted by two percent in 2023, with inflation reaching 30 percent. However, independent experts suggest that these figures may be underestimated.

As a result of the economic situation, there are widespread shortages of fuel and other essential goods, and the government provides subsidies for nearly all goods and services consumed by the Cuban population.