Another day of crisis in Cuba: the regime postponed the increase in gasoline and blackouts continue

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The Cuban regime announced this Wednesday that it is postponing the increase in fuel prices by more than 400%, which would come into effect on Thursday, due to a computer virus.

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

“Logistic conditions and fuel sales remain at the levels we have achieved so far, therefore there will not be a stoppage in the fuel sales services we provide,” clarified the first vice minister of the MEP, Mildrey Granadillo.

He added that the regime will inform about the new date for the entry into force of the price increase “when the conditions are created” without specifying the day.

The increase in the cost of gasoline and diesel – and the launch of gas stations in foreign currency for tourists – is part of an adjustment plan to try to stabilize the Cuban economy after more than three years of crisis.

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

This means that a Cuban will have to pay 5,280 CUP (44 dollars) to fill a 40-liter tank, when the average state salary barely exceeds 4,200 CUP (35 dollars, at the official exchange rate but 14.5 in the widespread informal market).

The increase is one of the first measures to be implemented within a major adjustment plan announced by the regime in December, the purpose of which is to turn the direction of the economy, which closed 2023 with a drop in GDP of between 1 and 2% and with a projected fiscal deficit for this year of 18.5%.

In addition to the increase in fuel, the Cuban regime plans to increase interprovincial transportation rates by up to 600%; will cap the maximum pensions; It will apply an increase in other services such as electricity, water and liquefied gas cylinders and will replace universal subsidies on products with specific aid for vulnerable people.

These measures, as the dictator, Miguel Díaz-Canel, has argued, seek to correct “distortions” in the impoverished island economy. He has 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 the measures are not part of a “neoliberal plan” or shock and defends that economic recovery is sought.

Cuba foresees simultaneous blackouts in up to 22% of the country this Wednesday due to breakdowns and maintenance of power plants as well as fuel shortages, according to the daily report of the state company Unión Eléctrica (UNE).

This impact rate is, however, the lowest in the last five days, when the average has been around 33% of maximum demand. Supply cuts seriously affect industries and homes.

After years of serious difficulties in ensuring supply -especially in the summers of 2021 and 2022-, the energy situation had stabilized in recent months, but with the turn of the year, large specific drops in generation capacity have been recorded.

The UNE, dependent on the Ministry of Energy and Mines, calculates for the time of highest consumption, in the evening, an electrical generation capacity of 2,180 megawatts (MW) and a maximum demand of 2,700 MW.

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

The Cuban electrical system is in a precarious situation, evident in the frequent failures and breakages of its obsolete land plants, due to the chronic lack of investments and maintenance.

The lack of foreign currency from the State has also hindered the import of fuel, which also affects energy production, which largely depends on them.

With information from EFE