The shortage is noticeable everywhere in Cuba. Even the production of sugar was no longer sufficient to cover domestic demand. The government is relying on price increases.
Cuba, which is struggling economically, has announced increases in the price of petrol and diesel at the pumps of more than 400 percent from February. The government of the one-party state also announced on Monday (local time) price increases for liquid gas and electricity for households with high consumption from March.
This was intended to stimulate the economy, correct “distortions” and ensure the supply of fuel and electricity, explained Finance Minister Vladimir Regueiro and Energy Minister Vicente de la O Levy on state television.
The Communist Party leadership had previously announced difficult measures. According to official figures, gross domestic product shrank by between one and two percent last year, meaning inflation was around 30 percent.
Venezuelan support is waning
January 1st marked the 65th anniversary of the revolution around Fidel Castro. An embargo lasting approximately the same length of time and additional sanctions from its neighboring country, the USA, are hampering the Cuban economy. The situation has recently worsened, among other things, due to the collapse in tourism during the corona pandemic and the waning of support from its also crisis-ridden ally Venezuela.
In Cuba, among other things, food, medicine and fuel are in short supply – agriculture is also suffering from the latter shortage. Cuba has to import food, but foreign currency is scarce. Even the production of sugar, a core product in the country, was recently no longer enough to cover domestic needs.
An average monthly wage corresponds to around 15 euros according to the current exchange rate on the street. Given the high inflation, many Cubans can hardly afford more than the basic foods that are heavily subsidized by the state. Since 2022, around four percent of the Caribbean country’s approximately eleven million inhabitants have emigrated.
Source: Stern
