The Cuban government ignores the capped prices in its own stores in Freely Convertible Currency (MLC).
Several people are already experiencing it in their purchases and have posted on social media complaints about what could be a breach of the resolution in controversial state stores in foreign currency, considering the value of the MLC in the informal market.
The profile El Bohío Mío, on the social network X, specifically showed how top prices are not being complied with in stores in MLC with products such as oil. At the Ayllón shopping center in Matanzas, vegetable oil is priced higher than that established by the new regulations.
They found the price of vegetable oil for small and medium-sized businesses and are selling it more expensive than that limit in MLC. Seen on July 9th at the Ayllón shopping center in Matanzas," says the post from El Bohío Mío.
The government established an exchange rate of 1 to 120, but it never has enough foreign currency to offer, forcing the population to turn to the informal market to buy dollars, euros, or MLC, which is trading at 295 pesos this Wednesday.
The regime announced on Monday the implementation of price caps on six basic high-demand products, through Resolution 225/2024 of the Ministry of Finance and Prices.
The products and their established maximum prices are as follows:
- 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.
According to the resolution, the maximum price of vegetable oil is 990 Cuban pesos per liter. However, the oil for sale is 700 ml and its price is 3.35 CUC.
If the value of the MLC in the informal market is taken (295 CUP), the price of 3.35 MLC for a 700 ml bottle of oil is equivalent to 990 pesos. The price of one liter of oil would be 4.79 MLC (1,413.05 CUP) and therefore exceeds by more than one dollar the capped value for this product.
Oil is not the only product with pricing issues at MLC stores. There is also the case of chicken.
The price of chicken meat is over 820 pesos (42 MLC per box of 15 kg of chicken fillets) according to the exchange rate in MLC stores, with a limit of 680 Cuban pesos.
The issue of compliance with the new price regulations by MLC stores calls into question the effectiveness of the measures announced by the government.
Resolution 225/2024, which was initially introduced as a solution to protect consumers from inflation, now seems to be causing new issues such as shortages in the private sector supply.
For years, there has been a decrease in the availability of products in state-owned stores. Small and medium-sized businesses were the main source of supply for many Cubans, but they are starting to stop selling basic products such as milk, which is no longer sold in MLC.
Some Cubans, like economist Pedro Monreal, even fear that many entrepreneurs may decide to shut down their businesses due to price caps.
The denunciation of irregularities in the regime's stores that accept payment in freely convertible currency (MLC) evidences a crisis of compliance and trust in government policies.
The lingering question is whether the government will take measures to ensure that its own stores comply with established regulations and protect consumers from abusive prices.
What is your opinion?
COMMENTFiled under: