Service centers in MLC, fuel shortage and price increase in Cuba
As the economy of Cuba continues to face challenges, the Minister of Economy, Alejandro Gil Fernández, has announced significant changes in the country’s fuel pricing and distribution. In a televised address, Gil detailed the government’s plans to update retail and wholesale fuel prices, as well as launch a network of fuel service centers that will operate in Freely Convertible Currency (MLC).
The decision to introduce service stations that sell in foreign currency aims to mitigate the negative impacts of the fuel price increase on the population while also capturing fresh foreign currency for the country. According to a report from the state news agency, ACN, the move comes as part of a broader effort to address the economic challenges faced by the country.
In addition to the changes in fuel pricing and distribution, Gil also announced a 25% increase in the residential sector’s electricity rate for consumers exceeding 500 kilowatts per hour. This measure is intended to reduce electricity demand, the minister justified.
The government also plans to increase the prices of non-metered water, cigarettes, and tobacco, and make changes to the rates for liquefied gas and public passenger transportation, which are currently subsidized.
The announcement of service centers in MLC has raised comparisons to the existing stores that operate in MLC, which replaced the stores that operated in Cuban pesos. Many Cubans are concerned about the impact these changes will have on their daily lives and the overall economic situation in the country.
In his address, Gil Fernández acknowledged that Cuba’s fuel prices are among the lowest in the world and stressed that the current situation is unsustainable. He emphasized the need to review and adjust fuel prices to ensure the country’s ability to import necessary goods and maintain a balanced economy.
The decision to overhaul fuel pricing and introduce service centers in MLC reflects the government’s efforts to address the economic challenges facing Cuba. As the country navigates these changes, the impact on the population and the economy remains to be seen.