Matanzas Joins the Fight Against Inflation with New Price Controls on Essential Foods

The authorities in Matanzas have stepped in to regulate the pricing of essential food items, setting reference prices for staples such as cooking oil, eggs, powdered milk, chicken, rice, and beans. The government has also sanctioned a commercial markup of up to 30% for both wholesale and retail transactions.

This initiative was unveiled on Saturday by the Provincial Government of People's Power in Matanzas. The decision was reportedly made in response to numerous public complaints regarding what has been described as "exorbitant" price hikes on essential goods.

According to the official announcement, provincial authorities examined cost sheets, market reference prices, and the exchange rate, while also engaging with various economic entities involved in sales and distribution.

Addressing Economic Challenges Amid U.S. Sanctions

The Matanzas government pointed out that their decision was made in consideration of existing regulations on price formation amidst recent economic reforms in the country. They reiterated the stance that part of the supply crisis is attributable to the U.S. embargo.

A broad policy has been enacted to allow a commercial markup of up to 30% for setting wholesale and retail prices. Alongside this, a list of "reference" prices for ten food items has been established.

Price List for Essential Goods

The reference price for edible oil, excluding olive oil, has been set at 2,250 CUP per liter for wholesale and 2,500 CUP for retail sales. Eggs are priced at 100 CUP each for wholesale and 110 CUP for retail.

Powdered milk is set at 3,000 CUP per kilogram for wholesale and 3,400 CUP for retail. Sugar is priced at 350 CUP per pound for wholesale and 400 CUP for consumers.

Sausages in one-kilogram packages are priced at 850 CUP for wholesale and 900 CUP for retail. For chicken parts, the announced prices are 450 CUP per pound for wholesale and 500 CUP for retail sales.

Pasta is priced at 800 CUP per kilogram for wholesale and 835 CUP for retail. Ground meat prices are set at 300 CUP and 350 CUP, respectively.

Rice has a reference price of 250 CUP per pound for wholesale and 300 CUP for retail, while beans are priced at 300 CUP and 350 CUP per pound, respectively.

Combating Price Gouging and Speculation

The Provincial Council of People's Power emphasized its intention to tackle "illegalities and abusive, speculative pricing" and urged both state and private traders to comply with the announced decisions.

The new measures in Matanzas come amid persistent inflation and significant challenges in accessing food, prompting authorities to once again resort to limiting margins and setting price references as a strategy to curb rising costs.

In Villa Clara, maximum prices have also been imposed on various essential foods, with a commercial margin of up to 30%. For instance, eggs are capped at a retail maximum of 110 CUP per unit and oil at 2,500 CUP per liter.

Similarly, in San Luis, Santiago de Cuba, reference prices were established for oil, chicken, rice, and eggs. Oil was set at 2,200 CUP per unit, chicken at 600 CUP per pound, national rice at 250 CUP per pound, and eggs at 120 CUP per unit.

Although the municipal government clarified that these were not "capped" prices, it announced penalties for those who exceeded these values.

This approach has also been implemented in Moa and Banes, Holguín, where municipal governments set a reference oil price at 2,200 CUP. In Moa, controls extend to chicken, sausages, ground meat, cold cuts, eggs, powdered milk, pasta, rice, beans, imported sugar, soap, and detergents.

The most recent precedent occurred in Guantánamo, where the municipal government also set the reference oil price at 2,200 CUP. Authorities stressed that while not a formal cap, violations could lead to fines, confiscations, forced sales, and temporary business closures.