In a bid to alleviate mounting concerns over soaring gas prices, Cuba's vice minister of economy announced the postponement of the expected hike, citing a cybersecurity incident as the reason. The announcement comes after weeks of anxiety within the country over the proposed increase of up to 500%, which was scheduled to take effect on Thursday.

The planned hike in gas prices was part of an austerity plan unveiled in late December, causing widespread alarm due to its inclusion of price increases on essential services and staple goods, as well as cuts to subsidies and higher taxes on the emerging private sector. The potential impact on already expensive food prices, driven by inflation, has also triggered speculation.

Vice Minister of Economy and Planning, Mildred Granadillo de la Torre, defended the adjustment in fuel prices, asserting that it would incentivize savings and reduce demand in light of the high international market prices for fuel. For decades, the Cuban government has heavily subsidized fuel prices in the country.

The delay in the gas price increase has provided some relief to the population, particularly in Havana, where discussions revolve around the rising cost of living. However, the measures aimed at curbing the country's ballooning deficit and lowering inflation, which currently stands at around 30%, have faced criticism from economists who argue that they will hinder economic growth.

While the government has promised further changes in March, including higher prices for electricity, public transportation, and liquid gas, efforts have been made to alleviate public concerns. Salaries for those working in the health and education sectors have been increased, and President Miguel Díaz-Canel has been actively addressing fears and reassuring residents that they will not be abandoned.

Economists, such as Havana-based Omar Everleny, anticipate that the new measures will impact purchasing power and lead to even higher inflation in the coming months. Everleny expressed concerns about the government's emphasis on the political aspect of the measures, while many struggle to afford basic necessities.

The economic challenges faced by Cuba have been compounded by two significant blows in recent years: the tightening of the U.S. economic embargo under former President Donald Trump and the COVID-19 pandemic, which brought the tourism industry, a major source of revenue, to a standstill. The resultant economic situation has contributed to a significant increase in migration, with almost half a million Cubans migrating to the U.S. since October 2021.

Former Cuban central bank economist Pavel Vidal, who now teaches at Javeriana University in Colombia, supports the austerity measures, stating that they are necessary to reduce subsidies and the fiscal deficit. However, Vidal calls for the government to take steps to diversify and open up the economy, a longstanding issue in Cuba.

As the Cuban economy grapples with these challenges, individuals like Milanés, who rely on public transportation, express their concerns about the impending hike in gas prices. With long waits for buses and the occasional need to resort to costly taxis, the uncertainty surrounding transportation costs adds to the burden on everyday Cubans.

While the delay in the gas price increase may offer temporary respite, the underlying economic issues remain, requiring a comprehensive and sustainable approach to ensure the well-being of the Cuban people.