Dominican fuel prices hitting all-time highs
Without a doubt, the combination of the conflict in the Ukraine and US retirement from energy self-sufficiency has driven up oil prices around the globe. Gasoline is now over US$6.00 in some places in the United States, and here, in the Dominican Republic, premium gasoline is closing in on the RD$300.00 level (well over US$5.00).
To make matters worse for the government, the policy has been mostly to soften the economic blow by absorbing all or part of the price increases as dictated by the price of the crude of reference, West Texas Intermediate, that is used to calculate the price of gasoline and other fuels in the Dominican Republic. West Texas Intermediate hit above US$110.00 a barrel on the world exchanges late last week. The picture gets much more serious because the 2022 National Budget was calculated with targeted crude oil prices for 2022 at US$68.00 a barrel. The higher price of fuel, though, will indeed render more taxes for the government.
President Luis Abinader has indicated that he will address this issue shortly. The Executive Branch has sent amendments to the local hydrocarbons law to the Senate.
Meanwhile, Dominicans are taking steps to save on fuel.
Minister of Industry and Commerce Victor (Ito) Bisonó speaks of the need for austerity and better planning from the government. The Ministry of Industry & Commerce is the government department that sets fuel prices.
Source: DR1, DiarioLibre
Mar 8, 2022
Category: DR News |