In a startling development, the price of a liter of vegetable oil skyrocketed from 2,000 to 3,000 pesos in less than 24 hours in Sancti Spíritus. This dramatic increase was reported by Yosdany Morejón Ortega, a journalist with Radio Sancti Spíritus.
The sudden 1,000-peso hike, a staggering 50% increase, came without any official explanation. Morejón pointed out the disparity between the newly announced minimum wage of 3,210 pesos—effective from July 1 but only payable in August—and the fact that a single liter of oil nearly exhausts this entire income.
"We haven't even received the promised pay raise yet, and it's already disappearing," Morejón lamented, highlighting the contradictions faced by ordinary Cubans.
The journalist illustrated the situation with a photo from Revolico showing oil at 1,300 pesos per liter, remarking bitterly, "It feels like ages have passed since then."
"Prices are in a relentless race. Today it's oil. Tomorrow it could be anything else," he warned, emphasizing the ongoing uncertainty.
The Broader Impact of Rising Costs
Morejón Ortega expressed deep concern, not just over prices, but over the growing sense of vulnerability among Cubans. Independent estimates place inflation at around 70% annually, a reality that millions of Cubans grapple with daily.
This issue isn't confined to Sancti Spíritus alone. In Havana, the cost of sunflower oil reached 2,500 pesos a day before Morejón's report and exceeded 3,000 in several provinces. Prices varied across the island: 2,800 pesos in Isla de la Juventud, 2,650 in Trinidad, and 2,350 in Holguín and San Luis, with Marianao at 2,050.
Root Causes and Long-Term Implications
The rapid escalation of oil prices traces back to the structural changes following Resolution 150/2026, signed on June 20. This resolution removed price caps on imported edible oils, overturning the previous Resolution 225/2024 which had set a maximum price of 990 pesos per liter.
Adding to the issue, oil has been missing from the ration book for months. In June, the Minister of the Food Industry, Alberto López Díaz, acknowledged that in 2026, essential items like oil, chicken, and yogurt had not been distributed, forcing most Cubans to rely on the informal market.
Moreover, the oil crisis has reached extreme levels. In May, there were reports of Cubans using sunflower oil as a substitute for diesel in tractors and buses due to a complete fuel shortage, further driving up prices.
In a long-term response, the regime announced a soybean planting program in Guantánamo to produce yogurt, with only 15 hectares currently active, and edible oil production labeled as a "long-term goal."
Understanding the Oil Crisis in Cuba
What caused the sudden increase in oil prices in Sancti Spíritus?
The price surge is largely attributed to the removal of price caps on imported edible oils following Resolution 150/2026, along with the unavailability of oil in the ration book, forcing reliance on the informal market.
How are Cubans coping with the rising cost of oil?
Many Cubans are struggling to adjust their budgets as essential goods like oil become increasingly unaffordable. Some have resorted to using sunflower oil as a fuel substitute due to severe fuel shortages.