What is the impact of rising private sector prices on ordinary Cubans?

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Rising private sector prices are pushing ordinary Cubans into a more precarious daily life, especially those without family abroad or access to dollars.
Cuba’s expanding private sector has brought more goods such as rice, rum, and ketchup, but prices are sharply out of reach for people living on small state salaries and pensions. One liter of cooking oil costs US$3 in the private sector, which the retired security guard Joaquin Velazquez said is half of his monthly pension. For those who lack relatives abroad to send dollars or to order food online, higher prices and shortages are deepening day-to-day insecurity.
Cooking oil costs can consume major parts of pension income
Private mini-markets adjacent to state-run stores are stocked with items that are often nearly absent in state “bodegas”, including cooking staples and household goods. However, the private-sector price of US$3 per liter of cooking oil is described as a “stratospheric sum” for people on small pesos-based state payments. Velazquez said the cost of oil alone equals half of his monthly pension, highlighting how quickly household budgets can be squeezed.
People without dollars face a sharper gap in purchasing power
The widening price gap is tied to who can access dollars, since some Cubans rely on family abroad to send money or order food online. The story describes people without that support living an increasingly precarious existence, such as Maritza Gomez, a 62-year-old chemist. In practice, rising private-sector prices increase vulnerability for households that cannot substitute with dollar-linked income.
Fuel costs and power cuts are adding pressure on businesses and availability
Rising private-sector pricing is occurring alongside major operational strain, particularly from fuel shortages and electricity disruptions. Fuel prices can reach up to US$8 a liter, and businesses face power cuts lasting up to 30 hours at a time, which can limit trading and reduce sales capacity. A private grocery and fast food manager in western Havana said his company was “treading water”, and a business owner blamed power cuts and weaker purchasing power for a major decline in output.
The private boom is visible, but it also coincides with deeper inequality
The private “mipyme” sector is portrayed as a place of relative abundance, with reforms expected to increase the availability of goods under major free-market changes adopted in June. Yet the narrative also links the rise of private enterprise to deepened inequality, where new wealth appears in Havana’s more affluent areas while others struggle to keep up with prices. For ordinary Cubans on miniscule state salaries and pensions, the impact is felt as higher costs for basic items, not just a change in who sells goods.

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What is the impact of rising private sector prices on ordinary Cubans?

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