The Government of Cuba announced a significant increase in the wholesale prices of domestically produced cement, according to the Resolution 31/2025 published today in the Official Gazette.
The measure, which will take effect retroactively from January 1, 2025, establishes new maximum prices for the cement assortments marketed by the state-owned company ECOCEM, nearly doubling those of the previous resolution approved in 2022.
According to the Ministry of Finance and Prices, the decision is a response to the rising costs of essential raw materials such as clinker, additive gypsum, and steel balls, which have significantly increased production costs.
Authorities state that this update aims to "recognize the actual costs" of the production process, improve the economic efficiency of the sector, and reduce dependence on subsidies from the state budget.
The new scheme allows producing companies to set decentralized wholesale prices with a profit margin of up to 20% on the total cost. Additionally, ECOCEM is permitted to apply a commercial margin of up to 10% and invoice transportation costs separately.
The authorities also emphasize that the update could have a positive effect on the salary compensation for workers in the cement sector, which would help reduce the high turnover of skilled personnel that the industry faces.
Among the types of cement whose prices have been adjusted are: P-350 in a 42.5 kg bag; P-350 in bulk; P-250 in a 42.5 kg bag; P-250 in bulk and white cement in a 42.5 kg bag; with prices now ranging from 4,500 to 6,500 pesos.
The resolution formally repeals the previous Resolution 281/2022, which has been in effect since October 2022 and whose prices were almost half of those established this year, and updates the values set in Resolution 311/2020.
Although the authorities justify the increase as a measure to ensure the financial sustainability of the industry, it comes amid a sustained economic crisis, with high inflation, a shortage of construction materials, and an unmet housing demand.
State, private builders, and ordinary citizens could be affected by the rising cost of cement, which will impact both public work expenses and individual efforts to build or repair homes.
Frequently Asked Questions about the Price Increase of Cement in Cuba
Why has the Cuban government increased the prices of cement?
The Cuban government has raised cement prices to reflect the true production costs, improve the economic efficiency of the sector, and reduce reliance on subsidies from the state budget. The increase in raw material costs, such as clinker, additive gypsum, and steel balls, has significantly raised production costs, thereby justifying the price hike according to authorities.
How does the increase in cement prices affect Cuban citizens?
The increase in the price of cement will impact both public works costs and individual efforts to build or repair homes. State and private builders, as well as ordinary citizens, may be affected, which is likely to exacerbate the housing crisis in a context of high inflation and a shortage of construction materials.
What measures has the Cuban government taken to address the crisis in cement production?
The Cuban government has proposed as a strategy for 2025 the partial reactivation of the Cienfuegos cement plant, the promotion of cement export projects, and greater efficiency in the use of available materials. However, these measures lack concrete details, timelines, and visible resources, raising doubts about their effectiveness.
What is the current state of the cement industry in Cuba?
Cement production in Cuba is in a critical state, with only 10% of the installed capacity being utilized in 2024. The crisis is due to a lack of maintenance in the cement plants and a shortage of investments in recent years, which has severely impacted the housing program and other infrastructure projects in the country.
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