The Cuban government has urged citizens to report price cap violations by phone for six recently regulated essential products. The Ministry of Finance and Prices (MFP) announced on its Twitter account that communication channels have been established in each territory for people to report these infractions as part of a popular control movement.
"We owe everything to the people!" stated the MFP, alongside an image displaying the phone number and email addresses where reports can be made.
Last Monday, the government introduced price caps on six high-demand essential products (five food items and powdered detergent) in an effort to alleviate the impact of inflation on the population.
The MFP’s Resolution 225/2024 set maximum retail prices for chicken, oil (excluding olive oil), powdered milk, pasta, sausages, and detergent. This regulation will primarily affect micro, small, and medium-sized enterprises (MSMEs), which are the main sellers of these six products. Stores that operate with foreign currency (MLC) will not be as affected since they lack availability of most of these items.
Telephone reports will complement the efforts of the 7,000 inspectors the MFP has prepared to enforce the measure. Lourdes Rodríguez, the Vice Minister of Finance, confirmed that additional officials have been trained to enforce Decree 30, which governs the response to price violations.
Recently, Vice Minister Rodríguez Ruiz held a tense meeting with entrepreneurs and MSME directors to inform them about the decision to cap prices on essential products. During the meeting, the merchants highlighted three structural issues in the Cuban economy that make it difficult for them to comply with government orders: currency exchange rate distortion, fiscal pressure on MSMEs, and fuel shortages for transporting goods.
Understanding Price Cap Violations in Cuba
To provide further clarity on the recent price cap regulations and their implications, we have compiled a few frequently asked questions and answers.
What products are affected by the new price caps?
The new price caps affect chicken, oil (excluding olive oil), powdered milk, pasta, sausages, and detergent.
How can citizens report price cap violations?
Citizens can report price cap violations by calling the designated hotline numbers or sending an email to the addresses provided by the Ministry of Finance and Prices.
Who will enforce the new price regulations?
The enforcement of the new price regulations will be carried out by 7,000 inspectors prepared by the Ministry of Finance and Prices, along with additional officials trained to enforce Decree 30.
What challenges do MSMEs face in complying with the price caps?
MSMEs face several challenges in complying with the price caps, including currency exchange rate distortion, fiscal pressure, and fuel shortages for transporting goods.