On Wednesday, Economy Vice Minister Mildrey Granadillo announced that Cuba postponed an unpopular five-fold increase in fuel prices planned for February 1 due to a foreign cyberattack.
The Cuban government increased gasoline prices as it struggled with shortages and a deepening economic crisis.
Cuba Delays Fuel Price Hike
Drivers queue to fill their tanks at a petrol station in Havana, on January 9, 2024, a day after the Cuban Government announced a 500 percent hike in fuel prices starting in February. Cuba's cash-strapped government announced Monday that fuel prices will soar by more than 500 percent beginning February 1, part of a series of economic measures aimed at reducing the deficit. The cost of a liter of regular gasoline will rise from 25 pesos (20 US cents) to 132 pesos, while the price of premium gasoline will jump from 30 to 156 pesos, Minister of Finance and Prices Vladimir Regueiro said on state television. Authorities also said tourists to the struggling island nation will pay for fuel in foreign currency.
In the closing moments of the midday newscast on the state-run TV, Granadillo said, "This decision is influenced by the occurrence of a cybersecurity incident in the computer systems for the marketing of fuels, the origin of which has been identified as a virus from abroad."
Cuba unveiled several measures in late December, including increases in gasoline and public transportation costs, citing the need to reduce an escalating fiscal deficit. The measures have been criticized for being inflationary, ill-timed, and lacking incentives for domestic production.
Granadillo reaffirmed the government's support for the new measures, calling the price increases and the simultaneous decision to sell fuel in dollars a "necessity" to help reverse a festering economic crisis.
Fuel shortages in recent days caused widespread, hour-long power outages on the island. However, a Cuban state-run media reported on Wednesday that the cyberattack was not the cause and would not affect the fuel supply for power generation.
The Banco Metropolitano of Cuba said it was experiencing issues with electronic payments and services but later announced that the problems had been resolved.
It was not immediately clear whether the two issues were connected.
Cubans have been worried for weeks about the proposed fuel price hike that would make a 40-liter gasoline tank unaffordable for those living on an average state salary.
The peso fell to a historic low of 290 on Wednesday due to the desperate search for dollars to pay for gas and protect against uncertainty, severely eroding the purchasing power of those Cubans who lack access to US dollars.
Carlos Perez, a cab driver in Havana, celebrated the decision to hit pause on the measure, claiming that the price increase was excessively high.
Granadillo said fuel rates will remain at current prices until further notice. He noted that there will not be a stoppage in the services they provide for the sale of fuel to their population.
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Thousands of Cubans Rally Amid Economic Crisis
Thousands of Cubans have risked going to jail by joining the largest demonstrations for decades against the Communist regime on the island.
One of Sunday's protesters, Alejandro, told BBC Mundo that there was no food and freedom as they did not let them live. The protests were significant because government critics faced severe penalties for their actions in Cuba.
The island president urged his supporters to "fight" the protesters Cuba is currently experiencing a severe economic crisis as a result of US sanctions and the pandemic.
Furthermore, Cubans have been infuriated by the breakdown of the economy, food and medicine shortages, price increases, and the way the government has handled the pandemic. Protesters yelled "freedom" and "down with the dictatorship" in protests across Cuba, including the capital Havana.
"We are not afraid. We want change, we do not want any more dictatorship," an unnamed protester in San Antonio told the BBC.
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