The Cuban government announced this Wednesday by surprise that it will apply from this Friday
the massive increase in retail fuel prices
, of more than 400%, which was going to come into effect on February 1 but was postponed after a cyber attack, reported on Wednesday the government.
Vladimir Regueiro, Minister of Finance and Prices, also ratified as of Friday the 25% increase in electricity rates for the sectors with the highest consumption, as part of a battery of measures announced in December for 2024 with the objective of reducing the fiscal deficit of the country.
The measure is part of
an adjustment plan
with which the government aims to reactivate the national economy, mired in a
deep crisis
for three years, and reduce the large public deficit.
According to official media, the announcement was made at a press conference in which two ministers participated and to which the international media accredited on the island were not invited.
In January, there were crowds and long queues at service stations, before the government postponed its entry into force, citing "a cybersecurity incident in computer systems."
That same week, the Minister of Economy, Alejandro Gil, one of the highest-profile politicians on the island until then and who had admitted that the government could not continue subsidizing fuel, was dismissed.
The increase in fuel prices in Cuba is part of a great adjustment plan.
Photo: AFP
Once the increase is launched, regular gasoline will go from the current 25 pesos (CUP) to 132 (from 0.21 dollars to 1.1, at the official exchange rate for individuals).
This means that a Cuban will have to pay 5,280 CUP (44 dollars) to fill a 40-liter tank, when the average state salary barely exceeds 4,200 CUP (35 dollars, at the official exchange rate, but 14.5 in the widespread informal market). .
At the press conference it was also reported that this Friday the increases in water and electricity rates will also come into force, which as a result of the suspension of the fuel increase were also frozen "until further notice."
The also announced increase in interprovincial transportation (up to 600%) will not be applied for the moment, nor will the 25% increase in liquefied gas cylinders.
A service station closed due to lack of gasoline, this Wednesday in Havana.
Photo: EFE
More inflation
In his meeting with the press, Minister Regueiro assured that the Executive is "aware" that the measure has
"an inflationary impact",
since fuel "is a product that cuts across the entire economy", according to the official Cubadebate website.
The minister added that the Cuban government has adopted a "group of decisions" that "attenuate" the inflationary "impact" of this measure, possibly referring to the decision not to apply the planned increases to wholesalers.
The government of Miguel Díaz-Canel had previously assured that these measures would only be applied when the conditions were met and that vulnerable groups would be supported, although at the moment it has not been publicly indicated who these population segments are or what they will be like. helped.
Regueiro added that current fuel prices "do not recognize the real costs that the country incurs" when acquiring it abroad: "They were outdated prices and generated subsidies from the State Budget."
The adjustment plan
The Cuban Executive announced by surprise last December a major adjustment plan with the objective of
"correcting distortions"
that has generated great controversy in the country due to the difficult situation in which the vast majority of Cubans live.
In addition to these increases, the plan contemplated a new devaluation of the peso, still in the study phase, and the
progressive end of universal subsidies
for products to make way for a system of aid to people in need.
The island closed 2023 with a contraction in gross domestic product (GDP) of between 1 and 2% (which is still below the 2019 level) and announced that the public deficit this year will be 18.5 %, for the fifth consecutive year in
large red figures
.
Cuba's chronic economic difficulties have degenerated three years ago into a serious crisis due to the pandemic, the tightening of US sanctions and decisions in national macroeconomic, commercial and monetary policy.
Milk for the little ones is scarce in Cuba.
Photo: EFE
Lack of milk and request for help from the UN
At the same time, the Cuban government
requested help for the first time
through an official communication to the management of the World Food Program (WFP) due to the country's difficulties in being able to continue delivering milk to children under 7 years of age.
As confirmed by the WFP to the EFE agency, the executive management of this arm of the United Nations, which defines itself as “the largest humanitarian organization in the world,” received an official communication from the Havana government and is already sending powdered milk to the island.
“We confirm that the WFP has received an official communication from the (Cuban) government requesting support to continue the monthly delivery of 1 kilogram of milk for girls and boys under 7 years of age throughout the country,” the WFP delegation indicated in writing in the island.
The UN program, which speaks of
“urgent need,”
highlights “the importance of this request,” especially in the context of the “deep economic crisis facing Cuba,” something that is “significantly impacting food and nutritional security.” of the population” of the country.
The multilateral organization confirmed that "this is the first time that Cuba has requested support by issuing an official communication at the highest level of management of the WFP," although the program has had several projects on the island for some time.
According to sources close to the government, the Ministry of Foreign Trade and Foreign Investment (Mincex) sent the letter to the WFP executive directorate in Rome at the end of last year.
Thus, the WFP indicated that this month it managed to deliver "144 metric tons of skimmed milk powder", which benefit almost 48,000 children between 7 months and 3 years in Pinar del Río and Havana. This represents just 6% of the minors to whom the government intends to provide subsidized milk.
Furthermore, according to the WFP, the Cuban request "does not refer to any explicit time frame", that is, it does not ask for support for a limited period, which is why the multilateral organization is seeking to "mobilize additional resources."
Milk has been a scarce commodity for years in Cuba, although in general children up to 7 years old (and people with special diets) could count on a quantity of powdered milk per month through the supply book (ration card). ), so they obtained it at
a highly subsidized price
(2.5 pesos per kilogram, about 21 cents).
Availability of state-sourced milk, however, has deteriorated in recent months.
Some provinces have cut the prioritized population or reduced the quantities they deliver, while others have begun to distribute vitamin drinks as a substitute.
Source: EFE
C.B.