The Cuban government sets prices on six basic products.

The Cuban government announced on Monday the implementation of price caps on six essential high-demand products through a resolution published in the Official Gazette of Cuba.

Resolution 225/2024 of the Ministry of Finance and Prices establishes that the products that now have maximum retail prices are the following:

Chopped chicken: 680 pesos per kilogram.

Edible oils (except for olive oil): 990 pesos per liter

Powdered milk: 1,675 pesos per kilogram

Pasta: 835 pesos per kilogram

Sausages: 1,045 pesos per kilogram

Powder detergent: 630 pesos per kilogram

The resolution is presented as an effort to mitigate the impact of inflation on consumers.

To achieve this, the customs duty payment on the importation of these products is eliminated and maximum sale prices are set. These prices take into account the costs of acquisition, marketing, the profit of the merchants, and the Sales Tax.

In addition, a profit margin of up to 30% is established on costs and expenses, provided that the prices defined in the annex of the resolution are not exceeded.

The approved regulation clarifies that the establishment of these maximum prices does not imply or justify an increase in current prices if they are already lower.

The Minister of Finance and Prices, Vladimir Regueiro Ale, highlighted that this action responds to the current economic conditions of the country and is part of the government's efforts to protect the purchasing power of the population.

During a press conference, Regueiro stated that the regulation will be "mandatory compliance for all economic actors. There is no discriminatory treatment for one or the other of the economy, but everyone must contribute to maintaining a price level contained for these essential products for the population," reported the officialist Granma.

However, the resolution will mainly affect micro, small, and medium-sized enterprises (MSMEs), which are the ones that currently market these six products the most. On the other hand, foreign currency collecting stores, known as MLC stores, will not be as impacted, as most of these foods are not available in them.

The approved provision this Monday also specifies that the Ministry of Finance and Prices, in coordination with the Ministries of Foreign Trade and Foreign Investment, and of Domestic Trade, will periodically monitor the behavior of the import prices of these goods to make necessary updates to the maximum retail prices and consider the inclusion of other products on the list.

Recently, the Deputy Minister of Finance and Prices of Cuba, Lourdes Rodríguez Ruiz, held a tense meeting with entrepreneurs and managers of SMEs to inform about the government's decision to cap the prices of essential products sold in the retail network.

A recording that the independent media outlet elTOQUE had access to allowed detecting the atmosphere of tension in which the meeting unfolded, with critical interventions from the "new actors of the economy" and expressions of dissatisfaction with the government's policies to contain inflation.

The regime's intention to cap prices was supposed to come into effect on July first; however, the day before, the Cuban government revoked the decision to cap retail prices for a group of products marketed by the private sector.

Before, the regime had announced that it had a 7,000-strong army of inspectors ready, who will be responsible for overseeing and ensuring compliance with the regulation that governs price caps.