Another day of crisis in Cuba: the regime suspends gasoline increases and blackouts continue

A Cuban must pay 5,280 cups ($44) to fill a 40-liter tank (Reuters/Yander Zamora)

He Cuban regime announced this Wednesday that it is postponing the increase in fuel prices for more than a 400%Which will come into effect from Thursday due to computer virus.

In an unexpected intervention on Cuban television, Ministry of Economy (MEP) assured that the virus affecting the cyber security of gas stations allegedly comes from outside the island.

“Logistics conditions and fuel sales remain at the same level that we have achieved so far, so there will be no interruption to the fuel sales services we provide,” explained the MEP First Deputy Minister. Mildre Granadillo.

He said the government will inform the new date of implementation of the price hike “when conditions arise”, without specifying the day.

The increase in the cost of gasoline and diesel – and the introduction of foreign exchange gas stations for tourists – is part of adjustment plan Attempting to stabilize Cuba’s economy after more than three years of crisis.

Until the announcement, Cuban fuel prices were about to quintuple. Regular gasoline was going to be 132 from the current 25 pesos (CUP) (0.21 to 1.1 dollars at the official exchange rate for individuals).

This means that a Cuban would have to pay 5,280 CUP ($44) to fill a 40-litre tank, when the average state wage is barely 4,200 CUP ($35 at the official exchange rate but $14.5 in the wider unofficial market). is more.

The increase is one of the first measures to be implemented under a major adjustment plan announced by the regime in December, which aims to give a change in direction of economyWhich ends with a 1 to 2% decline in GDP in 2023 and a projected fiscal deficit of 18.5% this year.

In addition to the fuel increase, the Cuban regime plans to increase interprovincial transportation rates by 600%; Will fix the maximum pension limit; It would impose increases in other services such as electricity, water and liquefied gas cylinders and replace universal subsidies on products with specific support for the vulnerable.

These measures, as the dictator has argued, Miguel Diaz-Canel, try to correct the “distortions” in the poor island economy. He also assured that work will be done so that no one is “left behind.”

In the face of complaints and criticism on social networks and independent media, the government has assured that these measures are not part of a “neoliberal plan” or a setback and has sought economic recovery while defending itself.

A woman reviews some notes by lamplight in an archive photo during a blackout in Havana (Cuba) (EFE/Ernesto Mastrascusa)

Cuba fears a simultaneous blackout up to 22% This Wednesday due to malfunctions and maintenance of power plants in the country, as well as fuel shortages, according to the daily report from the state company Union Electrica (UNE).

However, this incidence rate is the lowest in the last five days., when the average has been about 33% of maximum demand. Supply cuts have a serious impact on industries and households.

After years of serious difficulties in ensuring supply – especially in the summer of 2021 and 2022 –, the energy situation had stabilized in recent months, but with the end of the year, large specific declines in production capacity were recorded Is.

UNE, relying on the Ministry of Energy and Mines, calculates the peak consumption times in the afternoon and evening, the power generation capacity 2,180 MW (MW) and maximum demand 2,700 MW.

In this way, the deficit – the difference between supply and demand – would be 520 MW and the impact – which would actually be the disconnect – would reach 590 MW during “peak hours”.

That Cuba’s electricity system is in a precarious state is evident from Frequent failures and wear and tear of its obsolete terrestrial power plantsDue to chronic lack of investment and maintenance.

shortage of foreign exchange The state has also disrupted fuel imports, which also affects energy production, which largely depends on them.

(with information from EFE)

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