The price of petrol in Cuba has risen by 500% since Friday. The ruling Communist Party says it has introduced this measure as part of a major stabilisation plan to get the Cuban economy back on its feet. But after years of facing a deepening economic crisis, Cubans fear that that they will not be able to withstand this latest blow. FRANCE 24's Ed Augustin reports from Havana, Cuba.
Issued on: 03/03/2024
By: Ed AUGUSTIN
Long queues of cars have been part of the scenery in Cuba for several years. Motorists literally spend whole days waiting to fill up their vehicles with petrol. "These lines have become the norm, it's tedious. We spend hours in line to fill up just 40 litres of fuel," explains a motorist.
In response to a severe cash crisis, the Cuban government on Friday introduced a 500 percent fuel price hike, a measure that was put in place a month later than initially planned.
Cuba is "importing most of its oil at world market prices and selling it very much less. And so that's costing the government, they've got a huge fiscal deficit", says economist Emily Morris.
This sudden increase in the cost of petrol is a great source of anxiety for Cubans
Before March 1, petrol in Cuba cost 10 euro cents per litre – one of the lowest prices in the world. But this still seemed expensive to Cubans, whose wages have not kept pace with inflation in recent years.
In the short term, this measure risks accelerating inflation. In a country where the average wage is barely 16 US dollars a month, the end of hardship seems a long way off for Cubans, as malnutrition also continues to rise
Long queues of cars have been part of the scenery in Cuba for several years. Motorists literally spend whole days waiting to fill up their vehicles with petrol. "These lines have become the norm, it's tedious. We spend hours in line to fill up just 40 litres of fuel," explains a motorist.
In response to a severe cash crisis, the Cuban government on Friday introduced a 500 percent fuel price hike, a measure that was put in place a month later than initially planned.
Cuba is "importing most of its oil at world market prices and selling it very much less. And so that's costing the government, they've got a huge fiscal deficit", says economist Emily Morris.
This sudden increase in the cost of petrol is a great source of anxiety for Cubans
Before March 1, petrol in Cuba cost 10 euro cents per litre – one of the lowest prices in the world. But this still seemed expensive to Cubans, whose wages have not kept pace with inflation in recent years.
In the short term, this measure risks accelerating inflation. In a country where the average wage is barely 16 US dollars a month, the end of hardship seems a long way off for Cubans, as malnutrition also continues to rise
01:59 The 500% rise in petrol prices in Cuba is worrying the population.
© France 24
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