In the Latin American country of Cuba, which is in economic crisis, the country’s government increased the price of fuel oil by 500 percent. This price will be effective from February 1. In such a situation, many Cubans do not know how they will buy fuel at this price.
According to the news agency AFP, a liter of gasoline will be sold in Cuba at the new price for 132 pesos (5 and a half dollars in American currency). Earlier, a liter of gasoline cost only 25 pesos in the country. And high-quality gasoline will be sold from 30 pesos to 156 pesos per liter.
Cuban resident Domingo Wong told AFP his motorcycle does not need ten liters of fuel a week. Half of his salary now has to be spent on buying fuel as the price increases.
This 57-year-old security guard said he gets paid $42 a month. At the new price, the motorcycle will cost about $21 a month on fuel. I need ten liters of fuel a week if I’m not doing anything special. Every day I go to work, pick up my daughter from school, visit my sister.
The economy of Cuba, a country of 1.1 million people, is deteriorating due to the coronavirus pandemic, US sanctions and a weak economic structure. According to the country’s government, inflation in Cuba will reach 30 percent in 2023. But analysts say the rate is actually higher.
The Cuban government subsidizes almost all essential goods and services. But suddenly last month they said that the price of fuel may increase.
Alejandro Gil, the finance minister of the country, said that the cheapest fuel in the world was available in Cuba. The government is no longer able to afford this price.
Meanwhile, on Monday, the Cuban government announced a 25 percent increase in electricity prices for residential customers. Besides, the announcement of increasing the price of natural gas also came on this day. In such a situation, the locals fear that inflation will increase in Cuba.
Since 2021, the value of the Cuban currency, the peso, has also halved. Fuel may be cheaper in Cuba compared to the rest of the world, but if you compare it to the country’s wages, it’s very expensive, economist Omar Everleny Perez told AFP. The average salary of a person in Cuba is 40 dollars a month.