Guantánamo Authorities Set Cooking Oil Price at 2,200 Pesos: Penalties for Non-Compliance Announced

Authorities in Guantánamo have set a benchmark price of 2,200 pesos per unit for retail cooking oil sales, while denying that this is a newly imposed cap, even as they outline penalties for those who defy the guidelines.

The Guantánamo Municipal Administration Council revealed that the decision followed a review of public complaints about the "indiscriminate" price hikes and a study of the costs and expenses associated with selling the product.

"It is clarified that this is not a capped price (even though it effectively acts as one!), but the result of an economic evaluation of costs and marketing expenses," stated the official announcement.

The announcement did not specify the packaging, volume, type, or brand of oil to which the 2,200 pesos per "unit" price applies.

Nonetheless, refined soybean oil, typically sold in containers ranging from 900 milliliters to one liter, is the most common in the informal market.

This lack of detail leaves a clear contradiction: if 2,200 pesos is merely a reference and not a mandatory cap, how will authorities decide that a seller has violated the rule?

For instance, would a 900-milliliter bottle be priced at 2,200, or would it be the one-liter container?

The Council declared that enforcement efforts would be intensified and that violators might face fines, confiscation and forced sale of the product, or temporary closure of their businesses for up to three months.

This announcement highlights another glaring inconsistency. The municipal decision to "not cap prices" comes shortly after the Ministry of Finance and Prices formally removed retail price caps for edible oils, except olive oil, through Resolution 150/2026.

This regulation repealed resolutions 225 and 310 of 2024, which had capped prices for oil, cut-up chicken, powdered milk, pasta, and sausages.

The government's reform package also included decentralizing certain pricing powers to companies and local administrations.

However, Guantánamo's measure again relies on an assessment of costs and expenses, and while presenting the 2,200 pesos as a reference price, it warns of penalties for those who fail to comply with the guidelines.

In practice, a price presented as a guide could act as a cap if businesses exceeding it face fines, confiscations, or closures.

Moreover, the announcement does not clarify how much leeway vendors will have to account for differences in their acquisition and marketing costs.

This new measure contrasts with a speech by Miguel Díaz-Canel prior to the removal of general controls.

The leader admitted that the caps had failed to curb inflation and resulted in product shortages, shifts to the black market, and administrative decisions unable to keep pace with real prices.

"That's why we are not going to continue capping prices generally," Díaz-Canel stated at the time.

The Guantánamo government's statement seems to contradict Díaz-Canel's own words and, due to its ambiguities, leaves room for interpretation.

This decision could also set a precedent and be replicated by other local administrations to curb the uncontrollable price surge of cooking oil in Cuba.