A recent post highlighting the price caps on basic goods in Cuba sparked a wave of responses on social media. Many users questioned the practicality of these figures amid rampant inflation, fuel shortages, and the persistent rise of the dollar in the informal market.
The message, shared on Facebook by Hola Habana, warned of "unjustified" hikes in essential foods and high-demand items such as chicken, oil, powdered milk, pasta, sausages, and detergent, all regulated by Resolution 225/2025. It urged the public to report businesses breaching established caps and to demand electronic payment methods.
However, the public's reaction was swift and largely critical. "Unjustified?" many users asked, pointing to the soaring fuel prices, which can reach up to 3,000 pesos per liter in the informal market, and the dollar's value, hovering around 500 pesos on the street, far exceeding the official rate.
Numerous comments agreed that the prices set by the resolution are outdated given the current exchange rate landscape. When the regulation was issued, the official dollar rate was significantly lower than it is now. "With the dollar at 500 and fuel prices through the roof, who can sell at those prices without losing?" one user questioned.
Others highlighted the contradiction between the caps in national currency and the prices in state-run stores that operate in dollars. "Who sets the cap for USD stores?" they repeatedly asked, comparing the official price of milk or oil to its value in foreign currency, which, when exchanged, far exceeds what is established in Cuban pesos.
There were also reports of many businesses refusing to accept electronic transfers, despite the official requirement, along with accusations of corruption against inspectors tasked with enforcing the rules. "Everyone sees it, and no one does anything," summarized a comment that received numerous reactions.
Some defended small vendors and micro, small, and medium enterprises (MSMEs), arguing they purchase goods at high prices and face rising costs for transport, taxes, and inventory replenishment. Others, however, called for greater control and real sanctions against what they see as abuses.
Amid divergent opinions, a common thread was distrust. For many Cubans, the official price list "exists only on paper." In reality, they claim, oil exceeds 1,400 or 1,500 pesos per liter; a 10-pound pack of chicken costs 4,000 pesos or more; and powdered milk is far above the announced cap.
In a context marked by power outages, fuel crises, and diminished purchasing power, the debate over pricing has once again highlighted the gap between formal regulations and the real economy experienced daily by millions of Cubans.
Understanding Cuba's Economic Challenges
Why are price caps in Cuba considered impractical by many?
Many believe the price caps are impractical due to the significant inflation, fuel shortages, and the rising value of the dollar in the informal market, which makes it difficult for vendors to adhere to official prices without incurring losses.
What challenges do small vendors in Cuba face?
Small vendors face challenges such as purchasing goods at high prices, increasing costs for transport, taxes, and inventory replenishment, making it difficult to comply with price caps without financial loss.
How does the informal market affect the Cuban economy?
The informal market affects the Cuban economy by setting exchange rates and prices that often exceed official figures, leading to disparities between regulated prices and those in the real market, contributing to economic instability.