LatinNews Daily - 29 February 2024

*Cuba’s government has confirmed that as of 1 March, new energy tariffs for top-tier consumers and changes to fuel prices will take effect. The changes were due to take effect on 1 February but were postponed following reports of a cyber-attack from outside the country. The decision threw into disarray an economic stabilisation plan unveiled in December by the Communist government as part of efforts to revive the island’s faltering economy and resulted in the dismissal of Economy Minister Alejandro Gil. Cuba’s minister of finance & prices (FFP), Vladimir Regueiro Ale, acknowledged that the price rises will have an inflationary impact but highlighted various decisions aimed at mitigating this. These include the decision to restrict fuel price rises to the retail sector, leaving unchanged the discounted wholesale prices that apply to public services such as transportation. Government officials also announced a delay on raising the price of liquefied gas which is commonly used for cooking. The country’s energy & mines minister, Vicente La O Levy, said the increase in retail prices of fuel would better reflect its market value and enable Cuba to buy more fuel to address current shortages and blackouts. The price rises come as Cuba continues to face its worst economic crisis in decades due to the impact of the coronavirus (Covid-19) pandemic, US economic sanctions, and devastation wreaked in recent years by hurricanes, among other things. Last month Gil said Cuba’s GDP could contract by 1-2% in 2023, (having previously forecast GDP growth of 3%) although he forecast 2% growth for 2024.