Economic consequences of the drastic increase in fuel prices.

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Hello, my friends. Today I want to share with you my opinion on the latest developments regarding the economy in Cuba. Not long ago I told you about some economic measures that were coming for 2024, and well, now we know more details. So I am not surprised by the drastic measures that will be implemented.

First, let me tell you that what I anticipated as a disaster, now seems to be worse. The government announced a package of seven measures, and three days ago they specified in detail what and how much they were. They brought to light the percentage data of at least two of these measures.

The first of these is in relation to the increase in fuel prices. We knew it was coming, but we had no idea how much. This will be effective on February 1, so a liter of gasoline or diesel is still between 20 and 25 Cuban pesos, but it can only be purchased almost exclusively in Havana and that by queuing for hours. So it will only be a slight increase, almost 500%. Yes, it is no joke. Gasoline and diesel will be at 114 and 198 Cuban pesos respectively. Now, to give you an idea, our average salary is around 3828 Cuban pesos. And what does this mean? Well, a liter of gasoline, the cheapest, represents 2.97% of our average salary in Cuba. So soon we will return to the primitive age, we will be transported by animal attraction.

But that is not all, because the second measure comes as a consequence of the fuel increase; the first direct consequence of this. I am referring to the increase in the price of transportation. Remember what I told you about the increase in fuel? Of course, everything that depends on it will also go up, and you cannot imagine how much. Bus fares increased by 400%, railroads by 600% and aviation by 468%. This measure will become effective during the month of March.

So my great concern is the knock-on effect this will have. Mainly in agriculture, which has already been suffering a drop in production during the last few years. In addition, shortages, inflation and foreign exchange should receive the direct impact of these measures. How are we going to survive now with these new economic shocks? That must be the million dollar question.

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In an economy that is not lifting its head, and an example of this is the GDP for 2023 which contracted by 2%, according to state data, so in reality it would be much, much worse. They are dealing with huge problems, and now the situation looks even bleaker. If only there was enough fuel to supply the demand, but there certainly won't be. An example of this is the current prices, where the State sells it at 25, but the supply is so miserable, that an alternative market arises, where its price is usually higher than 300 Cuban pesos.

These economic measures are hitting hard, and we can only prepare for the worst. The exorbitant increases in fuel and transportation prices affect all of us, from the worker who has to go to work to the farmer who struggles to produce food. It is a heavy blow, and we can only hope that measures will be taken to alleviate this burden that is being imposed on us or the end of an inept government will come.

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Original text in Spanish: Translated with DeepL
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7 comments
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Global economy is only getting worse yet even as individuals we have a lot of work to do just to keep ourselves surviving. Nice post fren👍

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There is always an alternative. Thank you for your support

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Gas prices are terrible.
Do you know according to some cons-piracists Fidel Castro is real father of Canadian president that likes dressing up and looking handsome ? Very close friend with French leader of tomorrow lol They dont have to make it public to have feelings for each other while having children or wives. I could not believe it either. Dudes love dudes. I think its...normal? So this cancel culture or trend of changing childrens sexes is also normal apparently. Not everyone has to agree. Love spreading diseases build in chinese labs? sounds like some futuristic thing but when you consider the first animal clone was "labbed" in 1993 (lamb Dolly) - they had plenty of time to increase their practical research on perfectic nature while poisoning nature with cancer-creating but money-making investments , making its all legal thanks to connections that more often appear than disappear in the ether
Hello :)

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I was unaware of these conspiracies. But what I can tell you is that all these economic and social evils have a father, it was that creator that you mentioned. I do not think it is understandable, nor am I able to analyze how a pensioner is able to survive with 10 usd or less per month. After they gave their lives for a failed system. Where they live based on lies. We all have to learn from this and try not to let it happen in other countries. If you visit Cuba you will see that Cuba's tireder is socialism.

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not visiting cuba but have heard about guantanamo n tortures that prisoners experienced in awful conditions. all the generations that lived beforebu live within you. its strenght stronger than chains, even on a block or in the ghetto. u cannot crash human spirit even when they think they know how to hack to peoples brains with their chip neurolink from starlink frequencies replacement bs therapies they spend billions on while making people poor n begging for money. i dont have to be another che guavera or other rebolutionist to understand that being in constant debt since moment you are born - is awful way to treat average person on this "prison planet"

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I'm feeling the same pain, energy costs reverberate through our transportation sector hitting everything. It's more than inept, it's looking more like a deliberate reset to herd everyone into a new system that only the powerful elite control.

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Good thing it's not just me who feels this way.😞

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