HAVANA (AP) — In response to a challenging economic environment, the Cuban government announced on Friday its intention to either increase prices for fuel and electricity or reduce rations for essential supplies. President Miguel Díaz-Canel, addressing the nation, defended these measures as necessary during difficult times, highlighting the economic contraction of 1% to 2% this year and an alarming inflation rate of approximately 30%.
The economic challenges faced by the island nation have been exacerbated by problems in key sectors such as tourism, Cuba’s primary source of income, and agricultural production. The remarks were made during the closing sessions of Cuba’s National Assembly of People’s Power, effectively the country’s congress.
President Díaz-Canel emphasized that these measures were not part of a neo-liberal plan against the people, nor an attack on small businesses, nor an elimination of the basic market basket that Cubans can access through government coupons. Prime Minister Manuel Marrero Cruz expanded on the government’s dilemma, explaining that the economic hardships necessitated either raising prices for gasoline, electricity, and gas or reducing the contents of government ration books, which provide citizens with essential goods.
The economic crisis has already led to a significant exodus of hundreds of thousands of Cubans seeking a better life in the United States. The impact on daily life is evident, with long lines at gasoline stations becoming a common sight. The prospect of potential price increases for fuel and electricity may further intensify the rush to secure essential resources.
“Since they spoke (in congress), I haven’t been able to get gas yet,” lamented Alberto Corujo, a 54-year-old driver, highlighting the immediate impact of the government’s announcement on citizens’ daily lives.
Mercy García, a secretary at a state-owned business, echoed the sentiment of many Cubans, stating, “The situation is very hard for people of all social levels, because wages don’t keep up and prices have gone through the roof.”
The struggling tourism industry, with only 64% of the 2019 visitor levels, and challenges in sugar production have contributed to the government’s need to import food. The economic measures underscore the severity of the economic crisis and the government’s attempt to navigate through these challenges while minimizing the impact on its citizens.
As the Cuban people grapple with the repercussions of these tough economic decisions, the government faces the delicate task of balancing the need for financial stability with the well-being of its population. The coming weeks will likely witness how these measures unfold and their impact on the daily lives of Cubans.
