Cyber attack delays Cuban fuel price surge

In a recent announcement on Cuban television, the Ministry of Economy revealed that a cyberattack affecting gas stations has compelled the government to defer a scheduled fuel price surge. The Ministry stated they believed the cyber incident to have originated from abroad.

Mildrey Granadillo, the first deputy minister, assured the public that despite the cyberattack, there would be no disruption in the sale of fuel. Granadillo stated that the government will disclose the revised date for the fuel price increase when the conditions are deemed appropriate, refraining from specifying a particular date.

The initial plan, before the unexpected setback, aimed at quintupling fuel prices in Cuba. Regular gasoline was slated to rise from 25 pesos (CUP) to 132 pesos (equivalent to $0.21 to $1.1, based on the official dollar exchange rate for individuals).

Under the proposed adjustment plan, which seeks to stabilise the Cuban economy after a prolonged crisis exceeding three years, the rise in fuel prices is just one aspect of the broader strategy. The government’s plan addresses an economic downturn resulting in a 2023 GDP contraction ranging from 1 to 2 percent and an anticipated fiscal deficit of 18.5 percent for the same year.

Additionally, the government plans to implement several measures, including up to a 600% increase in interprovincial transportation fares, capping maximum pensions, raising the costs of services like electricity, water, and gas, and transitioning from blanket subsidies to targeted assistance for the most vulnerable population segments.

President Miguel Díaz-Canel asserts that these measures aim to rectify distortions in the island’s economy, emphasising that efforts will be made to ensure inclusivity. In response to criticisms and complaints on social media and independent media outlets, the government has clarified that these measures are not part of a neoliberal plan or shock plan but are instead focused on achieving economic recovery.