Report Disputes DEA on Cocaine Price Rise

Cocaine prices have steadily declined over the long-term, according to a report from the Washington Office on Latin America (WOLA) that disputes recent assertions from the U.S. Drug Enforcement Administration (DEA) about the impact of a reported rise in the cost of cocaine.

ABC News reported April 20 that the DEA recently reported that cocaine prices had risen in the past two years and credited the trend to enforcement efforts by the U.S. and Mexico. However, WOLA — referring to recent data from the Office of National Drug Control Policy — noted that in 2007 cocaine cost less than half of what it did in 1984.

WOLA drug-policy expert John Walsh said that while cocaine prices do occasionally spike, the overall trend has been toward lower prices. The U.S. cocaine market has remained steady, added Walsh, and purity has increased somewhat as drug cartels compete with each other and improve their efficiency.

The New York Times reported April 17 that the DEA said that the average price per gram of cocaine increased 21 percent in April 2009 compared to a year ago, while purity fell 12 percent during the same period.

However, WOLA said that the latest ONDCP data showed that cocaine prices in 2007 were at their lowest level ever. “When new price spikes are announced, they have to be considered in light of the historical evidence, not mere wishful thinking,” said WOLA’s Walsh. “None of the many previous spikes have put a lasting dent in the U.S. cocaine market.”

This summary has been revised to reflect the following correction:

Correction, May 4, 2009: This summary originally stated that the DEA recently reported that cocaine prices had fallen in the past two years. The DEA recently reported that cocaine prices had risen in the past two years.