In a surprising economic twist, the Cuban regime has reverted to enforcing controls, issuing fines, and encouraging citizens to report on merchants amidst soaring food prices. This shift comes mere weeks after openly acknowledging the failure of price caps and removing national limits on several essential goods.
The Municipal Administration Council of Plaza de la Revolución has introduced a WhatsApp number for the public to report private or state-run businesses for alleged “abusive and speculative prices” among other purported irregularities announced on its social media channels.
Authorities request detailed reports including the name and location of the business, the date and time of incidents, a description of the situation, and the informant’s contact information. “Draft your report carefully to aid enforcement actions,” states the publication, with the slogan “Zero Tolerance” prominently featured.
This approach revisits a longstanding tactic of the Cuban government: engaging citizens in the surveillance and reporting of fellow citizens.
The Return of Price Controls
Although many countries maintain channels for reporting commercial irregularities, in Cuba, this strategy takes on a different meaning when combined with the rhetoric of "enforcement," inspections, fines, forced sales, and business shutdowns.
This initiative appears particularly contradictory as Cuban leader Miguel Díaz-Canel himself admitted on June 18 that price caps had been ineffective. “Price caps in practice failed to curb inflation,” he confessed, acknowledging that they had led to “product shortages, a shift to illegality, higher prices,” and a race between actual prices and administrative decisions.
“Therefore, we will not continue with blanket price capping,” he assured.
Just three days later, Resolution 150/2026 formally lifted national maximum prices for products such as chopped chicken, oil, powdered milk, pasta, and sausages. This change coincided with the announcement of 176 economic measures by the regime, which included a more decentralized and market-referenced pricing formation.
Inflation and Enforcement
Yet, prices surged as the structural causes of the crisis—such as shortages, production declines, currency depreciation, high costs, and difficulties accessing foreign currency—remained unaddressed. Now, the regime is retracing its steps.
During an inspection at the Municipal Fair of John Lennon Park, Plaza de la Revolución authorities reported eggs at 5,000 CUP, oil at 4,500 CUP, ground meat at 750 CUP, and sausages at 1,200 CUP, labeling these prices “speculative.”
Offenders faced fines of 10,000 CUP, with additional penalties for other irregularities, forced sales, and temporary business closures.
These fines are based on Article 7, subsection l), of Decree 30 of 2021, which penalizes “abusive or speculative” pricing with fines ranging from 8,000 to 10,000 CUP.
Challenges in Defining "Abusive" Pricing
The decree deems a price “abusive” if it grows beyond a “reasonable range” intended to secure an “excessive” profit, concepts that provide significant room for administrative interpretation.
The contradiction is stark with oil and sausages: these are precisely the products whose national price caps were eliminated in June. If the state removed the oil's maximum price, what transparent reference now deems selling it at 4,500 CUP punishable?
The cycle of capping, releasing, pursuing, and reporting encapsulates the fluctuating nature of Cuban economic policy: the regime capped prices, witnessed shortages, publicly acknowledged failure, removed the caps, and when prices rose, intervened again through local governments, inspections, and penalties.
None of this addresses the root causes making a liter of oil reach 4,500 CUP. An inspector doesn't boost national production, a fine doesn't strengthen the currency, and a forced sale doesn't lower import costs.
On social media, Cubans describe the new measures as a return to “failed methods” and criticize the call for citizen reporting of merchants as a solution to rampant inflation.
The paradox lies in Díaz-Canel’s explanation less than two months ago of where this policy leads: product disappearance, illegal markets, and higher prices.
Nevertheless, faced with uncontrollable inflation by attacking its causes, the regime resorts to its familiar playbook: intervening prices, punishing sellers, and now asking neighbors to report them.
Understanding Cuba's Economic Policies
Why did Cuba remove the national price caps?
The Cuban government removed national price caps after acknowledging their failure to control inflation, which led to product shortages and illegal market activities.
What are the penalties for 'abusive' pricing in Cuba?
In Cuba, 'abusive' pricing can result in fines ranging from 8,000 to 10,000 CUP, as stipulated in Article 7, subsection l), of Decree 30 of 2021.