Related videos:
The supply crisis affecting Cuba has significantly impacted the cigar market, driving prices to unimaginable levels. Smoking on the Island has become an unattainable luxury for many, with prices multiplying up to 20 times the official value of a pack.
El Popular and the H. Upmann, two of the most consumed brands on the island, are currently sold in the informal market for exorbitant prices. A box of Popular without a filter, which officially costs 30 CUP in the network of bodegas, can reach up to 600 Cuban pesos on the street.
For those who prefer H. Upmann, the cost is even more alarming. Depending on the point of sale, a box can be found between 1,200 and 1,500 CUP, making it a luxury item for regular smokers.
Black market and desperation
An article from the official newspaper Girón describes how the scarcity of cigarettes has created a black market where prices soar uncontrollably. While the supply in state-run establishments is virtually nonexistent, in small and medium enterprises and informal sellers, cigarettes are valued as a precious commodity.
Many smokers have chosen to buy loose cigarettes to ration their consumption, but the cost remains high.
Authorities report an oversupply in cigarette production, but Cubans claim that the reality on the ground is different. Meanwhile, smokers are facing a tough dilemma: pay exorbitant prices or give up the habit by force.
What's happening with the Criollo cigars?
The Lázaro Peña Cigarette Company celebrated its achievement of its production plan, but in provinces such as Havana, Matanzas, and Villa Clara, a box of Criollo cigars can cost up to 500 pesos, while individual sales range between 30 and 50 pesos.
The difficulties in production are due to constant power outages and the lack of spare parts for outdated machinery. Tabacuba has promised to meet the demand, however, the reality in state stores contradicts these claims, with an increasingly limited supply.
In April 2024, the Cuban government announced an increase in official prices of cigars. According to Resolution 63 from the Ministry of Finance and Prices, packs of Criollos, Titanes, and Popular now cost 30 pesos, while the "Popular Auténtico" rose to 60 pesos.
This increase was justified as a measure to cover production costs, but it has not stopped the rise of the black market nor ensured stable production. The high demand has fueled the illegal trade of cigars.
Frequently Asked Questions About the Shortage and Price Increase of Cigars in Cuba
Why are cigarettes so expensive in Cuba?
The crisis of shortages and inflation have driven up the prices of cigarettes in Cuba, making them a luxury for many. The informal market has been greatly affected, with prices reaching up to 20 times the official value due to the lack of supply in state-run establishments.
How much does a box of cigarettes currently cost in the Cuban informal market?
In the informal market, a pack of cigarettes can cost between 600 and 1,500 Cuban pesos, depending on the brand and the place of sale. Cigars like H. Upmann are the ones that reach the highest prices.
What has the Cuban government done to address the shortage of cigars?
Despite the Cuban government's announcement of efforts to increase production and its adjustment of official cigar prices, these measures have not managed to alleviate the shortage or the rise of the black market, where prices remain high due to strong demand and limited supply.
How does the shortage of cigarettes affect Cuban smokers?
Scarcity has forced many Cuban smokers to reduce their consumption or turn to the black market, where they must pay exorbitant prices. For some, the cost is so high that they have had to give up the habit.
Filed under: