The authorities of the Municipal Administrative Council of Songo-La Maya, in the province of Santiago de Cuba, set reference prices for oil and eggs this Monday, in response to the uncontrolled rise in food prices, although the measure excluded other basic products that have also seen significant increases.
Supported by resolutions 345 and 350, the authorities established a ceiling of 2,500 Cuban pesos per liter of oil and 110 pesos per unit of egg.
Municipal leaders rushed to clarify that this does not involve strict price caps, but rather "values derived from an assessment of the costs and expenses associated with the marketing of these products."
The semantic distinction does not change the essence: any establishment that sells above those prices is subject to severe penalties.
Under Decree-Law 91, Article 12, Section j), offenders may receive fines of up to 60 installments of 1,000 pesos each, which amounts to a total of 60,000 Cuban pesos.
In addition to fines, the authorities announced the seizure of goods, partial suspension of the business, and the closure of the establishment for a period of up to three months.
To channel complaints, the municipal government has set up three phone lines: Public Assistance (22378529), Municipal Finance and Prices Directorate (22378149), and DIS (223788283).
The measure comes at a time when oil was being sold for between 4,000 and 7,000 pesos per liter in various areas of the country, and eggs reached between 250 and 300 pesos each in Santiago de Cuba, with cartons of 30 units costing as much as 7,500 pesos.
Songo-La Maya thus joins a chain of price fixes that has been sweeping across the island since early August. Guantánamo was the first to act on August 5, setting a reference price of 2,200 pesos per liter of oil; followed by Moa and Banes in Holguín, with the same value; San Luis set the price of oil at 2,200 pesos and eggs at 120 pesos on August 8; Villa Clara established that same day caps of 2,500 pesos per liter of oil and 110 pesos per egg; and Matanzas joined on Sunday with identical values.
The trigger for this spiral was Resolution 150/2026 of the Ministry of Finance and Prices, which on June 20 removed the national price caps for oil, chopped chicken, powdered milk, pasta, and sausages; on July 16, the Council of Ministers also lifted the price cap on rice.
The paradox is evident: the regime liberalized prices in June, and now the municipalities are once again controlling them due to public pressure, in a reversal that even economists are questioning.
Economists Pedro Monreal and Elías Amor criticized the reimplementation of price caps, calling it "absurd" and warning that historically it leads to shortages and pushes products into the black market, without addressing the underlying inflation.
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