Budget-Crunched Cuba To Hike Fuel Prices Over 500 Percent

Cuba's government, which subsidizes almost all essential goods and services, announced a series of measures in late December aimed at cutting the deficit at a time of severe economic crisis across the country (Credit: AFP)

Cuba's cash-strapped government announced Monday that fuel prices will soar by more than 500 percent beginning February 1, part of a series of economic measures aimed at reducing the deficit.

The cost of a liter of regular gasoline will rise from 25 pesos (20 US cents) to 132 pesos, while the price of premium gasoline will jump from 30 to 156 pesos, Minister of Finance and Prices Vladimir Regueiro said on state television.