Vegetable Oil Declared "True Price Olympic Champion" in Cuba by Holguin Writer

On Sunday, Holguin writer José Poveda Cruz took to Facebook to share a post titled "The Bottle of Oil and the Invisible Laws of the Market." In his piece, he humorously highlights the outrageous surge in the cost of vegetable oil in Cuba, dubbing it the "true Olympic champion of prices."

Poveda Cruz, who is a member of the Union of Writers and Artists of Cuba (UNEAC), likens inflation to a fever that has become part of everyday life on the island. He describes oil as the most reliable indicator of this economic ailment: “That golden liquid, essential for frying an egg, cooking beans, or adding dignity to rice, has become a more precise economic indicator than many speeches on the matter.”

He supports his claim with solid figures: "On the street, far from the much-maligned magnetic card and any regulatory attempts, a bottle now goes for nearly three thousand pesos. [...] That’s almost six dollars per bottle, a price hard to find even in countries where wages are several times higher than ours."

The Soaring Cost of Oil

This figure is not just literary exaggeration. The price of a liter of sunflower oil in the informal market jumped from about 1,500 pesos a few months ago to between 2,000 and 3,000 pesos by July, with variations depending on the province. An unusual case was Sancti Spíritus, where the price skyrocketed astonishingly in less than 24 hours.

This price hike is rooted in a governmental decision: the Ministry of Finance and Prices' Resolution 150/2026 removed price caps for imported edible oils, lifting the previous limit of 990 pesos per liter. Additionally, on July 16, the cap on rice was also lifted, and no oil was distributed through the ration book at any point in 2026.

Beyond Logistics: A Deeper Issue

Poveda Cruz suggests that logistics alone do not explain the situation: "There might be delayed containers, logistical difficulties, or import issues. But it’s also impossible to ignore another old habit: hiding the product until it reaches the desired price, turning scarcity into business and others' needs into private opportunity."

The writer also challenges the official narrative regarding wage hikes: "While salary increases are announced for certain sectors, oil prices continue to climb, threatening to consume those raises before they even hit the wallet. Inflation has this knack: giving with one hand while taking away with the other two."

Economic Reality for Cubans

The numbers paint a stark picture. The new minimum wage of 3,210 pesos, effective from July 1, 2026, equates to less than five dollars a month at the informal exchange rate, potentially enough to purchase just one bottle of oil without spending on other household necessities.

Economists estimate that a person in Cuba would need around 96,060 pesos monthly to meet basic needs, with the majority allocated to food. The official inflation rate for June 2026 was 18.27% year-on-year, yet independent estimates suggest the real inflation rate is much higher.

Poveda Cruz speaks from personal experience: "I am not speaking from a comfortable academic distance. I am part of the vast majority who feel this direct blow to their already shrinking wallets. I also do impossible math, watching as the expense sheet turns into a science fiction novel where numbers defy logic."

He concludes his post with a mix of analysis and resignation: "This is no longer just a matter of supply and demand. Other, less visible and much more effective actors are involved here. [...] No, this is not simply supply and demand. This is pure and hard cannon."