The Cuban government has introduced a substantial hike in the wholesale prices of domestically produced cement, as outlined in Resolution 31/2025, released today in the Official Gazette. This new pricing policy, retroactively effective from January 1, 2025, sets higher maximum prices for various cement products sold by the state-run company ECOCEM, nearly doubling the rates established in the 2022 resolution.
According to the Ministry of Finance and Prices, this decision is driven by the rising costs of essential raw materials such as clinker, gypsum additive, and steel balls, which have significantly inflated production expenses. The authorities claim that this update aims to "acknowledge the actual costs" involved in production, enhance the economic efficiency of the sector, and lessen reliance on state budget subsidies.
The new framework allows producer companies to set decentralized wholesale prices with a profit margin of up to 20% over total costs. Additionally, ECOCEM is permitted to apply a commercial margin of up to 10% and separately invoice transportation service costs.
Officials also emphasize that this pricing update might positively impact the wages of workers in the cement industry, potentially reducing the high turnover of skilled personnel faced by the sector. Among the cement assortments that have undergone price adjustments are: P-350 in 42.5 kg bags; P-350 in bulk; P-250 in 42.5 kg bags; P-250 in bulk; and white cement in 42.5 kg bags, with prices now ranging from 4,500 to 6,500 pesos.
This resolution formally repeals the previous Resolution 281/2022, effective since October 2022, whose prices were almost half of those set this year, and updates the values from Resolution 311/2020. Although the authorities justify the increase as a measure to ensure the financial sustainability of the industry, it comes amid a prolonged economic crisis characterized by high inflation, a shortage of construction materials, and unmet housing demands.
State builders, private contractors, and ordinary citizens may feel the impact of the rising cement costs, affecting the expenses of public construction projects as well as individual efforts to build or repair homes.
Implications of Cement Price Rise in Cuba
Why has Cuba increased the prices of domestic cement?
The Cuban government has raised cement prices due to the increased costs of raw materials such as clinker, gypsum additive, and steel balls, which have significantly driven up production expenses.
What impact will the cement price hike have on the construction industry in Cuba?
The increase in cement prices is likely to affect both public and private construction projects, raising overall costs and complicating efforts to meet housing demands amid ongoing economic challenges.
How might the new pricing policy affect workers in the cement industry?
The updated pricing scheme could lead to improved wages for workers in the cement sector, potentially addressing the high turnover of skilled personnel.