Cuba to increase price of fuel by more than 500%

The Cuban government has announced a five-fold increase in fuel prices as it struggles with shortages and a deepening economic crisis.

It said that from February the price of a litre of petrol would rise from from 25 pesos ($0.20; £0.16) to 132 pesos.

The government, which subsidises many goods, hopes this will help to reduce its deficit.

It is the latest measure making life more difficult for cash-strapped Cubans.

Finance minister Vladimir Regueiro said the cost of diesel and other types of gasoline would face similar mark-ups. He also announced a 25% increase in electricity prices for major consumers in residential areas, as well has hikes in costs for natural gas.

Mr Regueiro said the government would also open 29 new petrol stations which will solely accept payment in US dollars in order to raise foreign currency to purchase fuel on the international markets.

Cuba has been hit hard by economic turmoil, blamed on the coronavirus pandemic, the tightening of US sanctions in recent years, and structural weaknesses.

Credit: bbc.com

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