Cuba adjusts macroeconomics

Cuban Government has just announced a decision to increase gasoline and diesel prices by five times from February 1, from the current 25 pesos to 132 pesos (1.1 USD according to the official exchange rate). The above 428% increase is part of the macroeconomic adjustment plan that the Cuban Government announced in December.

Speaking on national television, Minister of Finance and Prices Vladimir Reguero Ale stressed that these changes aim to "revitalise” the Cuban economy mired in crisis. Also, from February 1, about 28 gas stations in Cuba will begin collecting fuel fees in foreign currency for tourists.

The Cuban Government plans to establish several service centres that only sell gasoline in hard currency and accept international payment types such as VISA, Mastercard and Russian MIR. Minister Vladimir Reguero said charging gasoline fees in USD will help Cuba increase foreign exchange revenue and use this source to pay for imported fuel from international suppliers.

In addition, the Cuban Government announced a decision to increase electricity prices by 25% for those using more than 500 kWh and liquefied petroleum gas prices for households from next March to cut subsidies and encourage the more effective use of energy. According to the Cuban Ministry of Mines and Energy, rising electricity prices will only affect about 5% of consumers.

NDO